FinCEN Update - In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability for failing to do so while the order remains in force. However, reporting companies may still choose to voluntarily submit their BOI reports.
More information is available on FinCEN’s website at https://www.fincen.gov/boi. Also, check out our recent blog.
FinCEN Update - In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability for failing to do so while the order remains in force. However, reporting companies may still choose to voluntarily submit their BOI reports.
More information is available on FinCEN’s website at https://www.fincen.gov/boi. Also, check out our recent blog.
FinCEN Identifier: Understanding the Purpose and Steps to Obtain
Written by Stephanie Glanville
Stephanie Glanville is the Marketing Manager of TaxBandits. She has several years of experience with IRS tax forms and the funtionality of TaxBandits. With a passion to help business owners better understand their IRS tax forms and filing, she aims to create content that is valuable and informative.
In this article, we cover the following topics
1. What is a FinCEN Identifier?
A FinCEN Identifier, or FinCEN ID, is a unique identification number issued by the Department of FinCEN to individuals and the reporting company that submits Beneficial Ownership Information Report (BOIR). Starting in 2024, an individual or an entity can request a unique identification number from the FinCEN department. Once all the required information and documents have been submitted, FinCEN will immediately provide the unique identifier.
2. What’s the purpose of a FinCEN Identifier?
Obtaining the FinCEN ID helps to protect sensitive personal information. When a reporting company or an individual, such as beneficial owners or company applicants, has already obtained the FinCEN ID, companies can provide the FinCEN ID instead of providing their personal information while reporting their details on Updated or Corrected BOI reports. However, obtaining the FinCEN ID is not mandatory, but it will streamline your entire BOI reporting process.
3. Who can get the FinCEN Identifier?
Both individuals (beneficial owners or company applicants) and entities (reporting companies) can get the FinCEN identifier. Starting January 1, 2024, authorized individuals can request a FinCEN identifier on someone's behalf. The identifier is obtained after the requesting party submits the necessary information and creates a Login.gov account for the respective individual. The individuals or entities receiving a FinCEN identifier should save their login credentials for future reference.
Here are the details that the applicant must provide while applying for a FinCEN identifier.
Individuals
- Name
- Date of Birth
- Residential address
- Unique Number
- Acceptable document image
Entities
- Entities can request the FinCEN ID while filing the initial BOI report or an updated BOI report.
4. What’s the format of the FinCEN Identifier?
The FinCEN Identifier consists of a 12-digit sequence of numbers. The first digit may vary depending on whether the ID is assigned to a person or a reporting company.
- For reporting companies, the FinCEN ID starts with "2" followed by the remaining 11 digits. (e.g., 200000000000)
- For individuals such as company applicants or beneficial owners, the FinCEN ID starts with "3," followed by the remaining 11 digits. (e.g., 300000000000).
5. How do I obtain a FinCEN Identifier?
You can obtain the FinCEN Identifier by following the steps below.
- Go to the official website of FinCEN.
- Enter the necessary details and submit the application
- Once you submit, FinCEN will immediately provide the FinCEN identifier
You can also obtain a FinCEN Identifier through TaxBandits.
- While filing your initial BOI report, you can request the FinCEN Identifier.
- After FinCEN accepts your BOI report, they will issue your unique identifier.
6. Streamline the BOI reporting process with TaxBandits
Using TaxBandits significantly simplifies the BOI filing process. By filing your BOI report through our platform, you can conveniently request your FinCEN Identifier while ensuring compliance with your BOI reporting requirements. This approach not only saves time but also streamlines your reporting obligations.
We have exclusive features and an amazing workflow to simplify your BOI reporting process. In addition to these features, we also provide a super amazing solution for tax pros and high-volume filers.