FinCEN to Publish Final Rule Implementing Beneficial Ownership Requirements in Tomorrow’s Federal Register
In tomorrow’s Federal Register, the Financial Crimes Enforcement Network (FinCEN) will publish its final rule to implement the beneficial ownership information reporting requirements that were included in the Corporate Transparency Act.
As you may recall, SWACCA submitted comments in February on FinCEN’s proposed rule regarding beneficial ownership requirements after previously submitting comments on FinCEN’s advanced notice of proposed rulemaking in May 2021. In its February comments, SWACCA supported the proposed rule’s adoption of SWACCA’s suggestions in its comments last May. We are pleased to report that this final rule addresses SWACCA's substantive concerns consistent with our comments. This includes SWACCA’s advocacy that FinCEN extend the rule’s exemption from beneficial ownership reporting requirements for nonprofit entities to 501(c)(6) organizations by broadly defining “tax-exempt entities” to ensure many SWACCA affiliates are covered by the nonprofit exemption. The final rule also adopts SWACCA’s request to 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 qualify for an exemption from the reporting requirements for operating companies that meet certain employee and revenue thresholds.
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