"Demystifying the New Beneficial Owner Information Report Requirement"

US LLCs now have new reporting requirements. Gingerbread Tax want to share with you a public service announcement about the new reporting requirement for entities that are registered to operate in the USA. This requirement is enforced by FinCEN (Financial Crime Enforcement Network).

Starting in January 2024, the US federal government - through FinCEN (the Financial Crime Enforcement Network) has legislated a new requirement for all corporations, companies and disregarded entities to disclose who are the 'beneficial owners' of the registered entity.  This requirement is part of the Corporate Transparency Act and is designed to stop illegal activity that is currently not easily seen because of corporate structures. 

The Act provides harsh penalties of up to $500 per day and 2 years jail time for owners who wilfully fail to report their ownership details. 

If you engaged Gingerbread to set up your entity in 2024, or you are keeping your LLC up to date with Gingerbread's annual renewal service, then we will automatically filling the BOI Report on your behalf or assist your to do it. If you are using another accountant to file your entities US tax returns, then please check with them as they will likely file your BOIR when they complete your return.

The IRS looks behind the paperwork curtain

If you set up an entity in the US prior to 2024, then please take 5 minutes to either file your BOI Report yourself or dissolve your entity prior to the filing deadline which is December 31st, 2024.  Here is a step by step guide.