Short-Lived Entities and Beneficial Owner Reporting

In September 2024, the Financial Crimes Enforcement Network (FinCEN) updated its frequently asked questions (FAQs) to address the registration requirement for certain short-lived entities under the Corporate Transparency Act.

The Corporate Transparency Act requires many business entities to report information about their beneficial owners in a brand-new government database. Search our tax news archive for “beneficial owner” to see our numerous earlier posts on this topic.

In FAQ C.14, FinCEN indicates that an entity that is created in 2024 but ceases to exist before the due date of its initial beneficial owner information must still submit the initial report. The FinCEN FAQs are available at: https://www.fincen.gov/boi-faqs.

As a reminder, registration reports for entities that existed prior to January 1, 2024, are due by January 1, 2025. For entities that were created on or after January 1, 2024, the due date is much sooner, as discussed in our post on December 5, 2023. 

The Tax Year 2023 M+O=CPE Individual Tax Year-End Workshop Reference Book has a detailed discussion of the registration requirement on pages 60 to 67.

Are you registered for one of our upcoming seminars in December and January? If you are not already registered, register here so you’ll be fully prepared!