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BTB Stock Income Tax Updates

Small Tax and Accounting Businesses Subject to BOI

The Beneficial Ownership Information (BOI) rules require most businesses owners to file a report with FinCEN indicating specific information relative to their business. The Reporting Rule, issued on September 30, 2022, implements Section 6403 of the Corporate Transparency Act. The rule describes who must file BOI reports, what information they must provide, and when they must file the reports. As a reminder, existing entities which were created or registered before January 1, 2024, are required to report by January 1, 2025. Companies created or registered on or after January 1, 2024, but before January 1, 2025, have 90 days to file. Those entities created or registered after January 1, 2025, have a 30-day reporting requirement.

Domestic and foreign entities that have filed formation or registration documents in a state are required to report unless they qualify for one of 23 exemptions. Although one exemption applies to accounting firms, not all firms are exempt. An exemption is only available to public accounting firms that are registered in accordance with Section 102 of the Sarbanes-Oxley Act of 2002.

Because most tax preparation firms providing accounting services in addition to tax preparation are not subject to Sarbanes-Oxley, they must comply with the reporting requirements under the Corporate Transparency Act. 

FinCEN opened an E-Filing website for reporting beneficial ownership information on January 1, 2024. More information is found here.

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