Physician practice owners must report this information to the U.S. Treasury this year

Sole or partial physician practice owners need to report basic information about themselves to a division of the U.S. Department of Treasury this year to comply with the Corporate Transparency Act (CTA).

The CTA, passed in 2021, is intended “to make it harder for bad actors to hide or benefit from ill-gotten gains through shell companies or opaque ownership structures.”¹  The law requires certain domestic and foreign LLCs, corporations, and other entities to file information about individuals who directly or indirectly own or control companies registered to do business in the United States. Business owners, including physician practice owners, must report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) at https://boiefiling.fincen.gov/ or via select third-party providers. Companies established before Jan. 1, 2024, must report their info before Jan. 1, 2025. Companies registered this year must report their information within 90 days of receiving their notice of registration.

FinCEN requires the following information about each of the company’s beneficial owners:

• Legal name,
• Birthdate,
• Residential address,
• Unique number and issuing jurisdiction from a passport, driver’s license, or state ID, and an image of the document.

This information will be available to federal, state, local and tribal officials for law enforcement purposes. Health care companies, including physician practices, are not among the 23 specific types of entities exempt from these reporting requirements (the Small Entity Compliance Guide provides more information about what type of companies are exempt).

—  Angela M. Lanigan, MPA, RD, LD

1. Financial Crimes Enforcement Network. Beneficial Ownership Information. Updated April 18, 2024. Accessed May 21, 2024. https://fincen.gov/boi-faqs#C_2.

Posted on May 31, 2024 by FPM Editors