A new report for businesses is now required under The Corporate Transparency Act (CTA). It was recently introduced and there are not a lot of resources out there yet explaining the process. It can be a fairly complex process in which you can do it all yourself or have some assistance from a compliance official. Here are things you should know which will make filing a BOIR simple and stress free. 

Know Who all Beneficial Owners Are

All beneficial owners do not just consist of those who have 25 percent or more ownership of the company, but also those who could potentially control or contribute to the company. Make sure to identify all. It is also strongly recommended that you identify spouses that are in community property states listed as a beneficial owner as well. It is better to over-disclose than under, as it could result in a penalty. 

Have Accurate Information 

After you have identified all beneficial owners, make sure that the information is accurate. Update, double check, and proofread all of the data before sending it in. Minor mistakes in the data can cause bigger problems down the road. 

Use FinCEN Online Tool 

FinCEN offers a free online tool that you can experiment with. Even if you do not want to file yourself, you can become familiar with this easy to use tool. You also do not have to worry about getting charged since it is free. They offer a pdf and an online version, depending on whichever works best for you. You can always refer back to it and update/change anything if you make a mistake. 

Be Timely 

Timeliness is of the essence in this case. There are strict regulations for filing deadlines boir. Missing the deadline can result in $500 penalties each day it is late and can go up to $10,000 in fines. Know when the date of the deadline is and be sure to put a reminder leading up to it. 

Contact Accountant if Assistance is Needed 

If filing on your own seems too overwhelming and complex, contact your accountant. They should have most, if not all, the information they need to file this report. They also have experience doing this with multiple reports, so you can trust them with handling your BOIR if you would rather have them go through the process. 

Choose Correct Government ID

You have to provide a form of ID that is issued by the government, so usually either driver’s license or passport. If your ID is going to expire soon and needs to be renewed, make sure to use the updated version for this report. If you can pick, use the ID that has the latest expiration date. 

Conclusion

These are a few things that will make the process of filing a BOIR much more simple. It is a fairly new process that can take some time getting used to, but these steps will get you started on the right foot.