07/25/2024 | News release | Distributed by Public on 07/25/2024 09:13
In a new round of FAQ, FinCEN shed light on how entities that are disregarded from their owners for Federal income tax purposes should handle tax identification numbers (TINs) under the Corporate Transparency Act (CTA).
Previously, there was uncertainty about whether disregarded entities would be required to obtain a TIN solely for reporting beneficial ownership information (BOI) to FinCEN. The commentary in the final rule on BOI suggested that obtaining a TIN was straightforward, potentially implying that entities might need to acquire one if they did not already possess a suitable identification number. We now know that is not the case.
The FAQ outlines specific scenarios for disregarded entities reporting TINs:
These guidelines ensure compliance with BOI reporting requirements while aligning with IRS rules on TIN usage. Disregarded entities should carefully determine the appropriate TIN to report based on their ownership structure.