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Include These Details in Your FinCEN Reports to Avoid Big Fines

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Include These Details in Your FinCEN Reports to Avoid Big Fines

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Whether you’re familiar with the Corporate Transparency Act or not, your practice may be required to comply with the new Financial Crimes Enforcement Network (FinCEN) reporting regulations, which went into effect on January 1, 2024. If your practice is required to report and doesn’t, you could face daily penalties of $500 — a fee that can add up quickly and become financially crushing.

Get a handle on what you must include in your FinCEN report to ensure you steer clear of steep fines and penalties.

What Companies Must Share on FinCEN Reports

Reporting companies based in the U.S. that must file FinCEN reports include corporations, LLCs and other entities that were formed by filing documents through a secretary of state, or another entity that’s similar. Many medical practices fall under this umbrella. These organizations must report:

  • The full legal name and any trade names or “doing business as” names under which the company does business
  • The jurisdiction where it was organized, incorporated or a registered
  • A complete address of the principal place of business. This should be a street address and not a P.O. Box or other information
  • The business’ tax ID number, also referred to as the EIN

If You’re a Beneficial Owner of the Company

If you own 25 percent or more of the company or you exercise substantial control over the organization, then you’re considered a “beneficial owner” and therefore must submit your own information on your FinCEN report as well.

In these situations, you must report:

  • Your full legal name
  • Your date of birth
  • A residential street address where you reside — not the business address, and not a P.O. Box
  • A photo of a valid ID with a unique identifying number, such as a U.S. Passport or a state driver’s license

You May Until Jan. 1 to File Your First Report

If your practice was in business prior to Jan. 1, 2024, you have until Jan. 1, 2025 to submit your first report to FinCEN. So even though the law went into effect earlier this year, the government is giving previously formed practices time to get their reports in.

If your firm was created on or after Jan. 1, 2024, you have 30 days to file your first report. You’ll submit your report through the FinCEN website, which is also where you can file to receive a FinCEN identifier, a unique number you’ll receive from the government. You’ll use that identifier if you ever need to make changes to your report. For instance, if you sell your beneficial ownership and no longer own part of a company.

Consult an Attorney With Questions

Some companies are considered exempt from the FinCEN reporting requirements, and it may be challenging to know if your business qualifies for one of the 23 types of exemptions. Your best bet — whether or not you’re an exempt organization — is to work with a qualified healthcare attorney who can help you untangle your FinCEN reporting obligations.

There’s much more to know about the Corporate Transparency Act and the FinCEN regulations. Let attorney Blake Gerney, Esq., walk you through the essentials during his online training event, FinCEN Reporting Rules, Avoid $500 Daily Penalty. Register today!


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