How Can a FinCEN Identifier Help with Beneficial Ownership Information Reporting?

Have you been asked to provide personal, confidential information for a Beneficial Ownership Information (BOI) report, as mandated under the federal Corporate Transparency Act (CTA)? Or are you a beneficial owner in several companies required to file a BOI report for each? Whether you are obligated to report for one or multiple companies, a FinCEN identifier may help you through the process.

What is a FinCEN Identifier?

A FinCEN identifier is a unique ID that can assist with BOI reporting and is available to individuals (beneficial owners and company applicants) or reporting companies. An individual or reporting company can apply to receive one FinCEN identifying number. Once obtained, the reporting company may use the FinCEN identifier in place of an individual’s personal information on the Beneficial Ownership Information report.

Having an identifier is not a requirement, but can ease the burden of the reporting process and preserve personal information.

How Can Beneficial Owners and Company Applicants Apply for a FinCEN Identifier?

Beneficial owners and company applicants can request a FinCEN identifier by applying on the FinCEN website. You will need to provide the following information:  

• Name
• Date of Birth
• Address 
• Unique identifying number and issuing jurisdiction from an acceptable identification document, and
• An image of one of the following identification documents: 
  • Non-expired U.S. passport,
  • Non-expired state driver’s license, 
  • Identification document issued by state, local government or tribe, or 
  • If an individual does not have any of the previous documents, a foreign passport.

After applying online, you will immediately receive a unique FinCEN identifier. Once received, provide your FinCEN identifier to the person submitting the BOI report. 

If you are interested in having a third party request a FinCEN identifier on your behalf, the third party will need to visit login.gov to create an account. This account will be tied to you as the individual receiving the FinCEN identifier. 

How Can Reporting Companies Apply for and Use a FinCEN Identifier on a Beneficial Ownership Information Report?

Reporting companies will need to apply for the FinCEN identifier when submitting the BOI report. There is a box to check within the report application that will allow you to request the unique FinCEN identifying number. You will receive it immediately after the submission. Note, you can request a FinCEN identifier after you submit the initial BOI report. However, the only way to do so post-submission is to submit another full BOI report — even if you are reporting the exact same information. 

A reporting company also may use another entity’s FinCEN identifier and full legal name in place of detailed information about its beneficial owners. This could be useful in cases where a reporting company is owned by another entity that meets the beneficial owner requirements. However, the reporting company can use another entity’s FinCEN identifier only if three conditions are met: 

1. The other entity obtains a FinCEN identifier and provides it to the reporting company, 
2. The beneficial owners hold interests in the reporting company through ownership interests in the other entity, and 
3. The beneficial owners of the reporting company and the other entity are the exact same individuals.

What Do I Do If My FinCEN Identifier Information Changes?

When any of the reported information used to obtain a FinCEN ID changes or becomes inaccurate for any reason, the individual or reporting company must update or correct the information within 30 days. For example, if you receive a new driver’s license or another identifying document that includes a changed name, address or identifying number used in the BOI report, you would need to update your FinCEN identifier information as well.

Individuals must update or correct information through the FinCEN identifier application, which is the same application process as when you first requested your FinCEN identifier. Reporting companies with a FinCEN identifier must update or correct the company’s information by filing an updated or corrected BOI report.

>> Visit the FinCEN website for more information related to the FinCEN identifier.

Contact Kelly Anzevino at kanzevino@cohencpa.com or a member of your service team to discuss this topic further.

Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.