FinCEN Publishes Compliance Guide to Help Small Businesses Comply with Its Beneficial Ownership Reporting Rule That Takes Effect January 1st
The Financial Crimes Enforcement Network (FinCEN) published a Small Entity Compliance Guide to assist the small business community in complying with its September 2022 beneficial ownership reporting rule. SWACCA was involved in the development of the beneficial ownership reporting rule, including submitting comments in February 2022 on the proposed rule and in May 2021 on FinCEN’s advanced notice of proposed rulemaking. As a result of our advocacy, the FinCEN beneficial ownership reporting rule included SWACCA-advocated provisions that define “full-time employee” pursuant to the Affordable Care Act so that construction contractors and other employers with seasonal variations in their workforce may be able to qualify for an exemption from the reporting requirements for operating companies that meet certain employee and revenue thresholds. The rule also included a SWACCA-advocated exemption from beneficial ownership reporting requirements for 501(c)(6) organizations to ensure that many SWACCA affiliates are covered by the rule’s non-profit exemption.
Under the beneficial ownership reporting rule, starting in 2024, entities will be required to report information about their beneficial owners to FinCEN. The Small Entity Compliance Guide is intended to help businesses determine if they are required to report their beneficial ownership information to FinCEN.
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