Tax, Retirement & Wealth Advisors in Salem OR | Jamison Hanson

As Financial Advisors in Salem, OR, we specialize in Wealth Management and Retirement Planning. Schedule a free review today!

Call: (503) 391-1040

Corporate Transparency Act (CTA)

Corporate Transparency Act (CTA)

Corporate Transparency Act: FinCEN BOI Reporting Requirement

Beginning in 2024 the U.S. Department of Financial Crimes Enforcement Network (FinCEN) requires most US companies to comply with the requirements of the Beneficial Ownership Information Reporting Rule. Companies are now required to report their Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). A beneficial owner is any individual who directly or indirectly owns or controls a company. This requirement comes from the Corporate Transparency Act that was passed to enhance the government’s efforts to combat money laundering, terrorist financing, and other financial crimes. This reporting requirement is enforced by potential penalties including fines of $500 per day up to $10,000 and possible imprisonment of up to 2 years.

All Relevant Business Entities Must File

Entities required to report under this regulation include corporations (S and C), limited liability companies (including single-member LLCs), LLPs, and other entities created by filing a document with any U.S. State. The majority of for-profit business entities will be required to file this report unless they qualify for an exemption, regardless of ownership. In the case where an individual owns or controls multiple companies, each entity will need to file a BOI report. There are 23 different types of entities that qualify for exemption. We have carefully reviewed the list of entities required to file and have identified only one exemption that appears to apply to a limited number of clients at Jamison Hanson. For this exemption, a company needs to have over 20 full-time employees and have annual gross sales of over $5,000,000. While there have been legal challenges to these regulations, as of the writing of this correspondence it appears that compliance with these filing requirements will be necessary.

Services Provided by Jamison Hanson

Initial Filing

Jamison Hanson is prepared to assist all clients to meet the FinCEN BOI Report filing requirement. This service will include contacting all beneficial owners to obtain necessary information to meet the filing requirement and any research that may be required to determine beneficial ownership.  We plan to utilize a specialized web-based platform that is equipped to securely and quickly collect and retain your information. The initial filing fee for Jamison Hanson will be based on the time required at our normal hourly rates, with a minimum fee of $395 per entity. We may be able to provide discounted pricing if several filings of a similar nature are required for multiple entities.

Required Updates

In addition to the initial filing, updates must be made within 30 days of certain events, including the following:

  1. Beneficial Ownership. Changes to 25% or greater owners or control persons.  If the change is due to death, the 30 days begins once the estate transfer ownership to the beneficiaries.
  2. ‘Doing Business As’ (DBA) name. Any change to the name of the business, either officially or as a DBA.
  3. Addresses. Changes of address for the business entity and/or the beneficial owners.
  4. Government identification. Certain changes to your identification documents will prompt the requirement to file an updated report with copies of the new documentation.  If you obtain a new driver’s license with a new driver’s license number (from a new state, for example) then an update is required.  However, driver’s licenses renewals do not require resubmission if the driver’s license number has not changed.  If you use a passport for your government identification, then at the time of renewal a copy of the new passport will need to be submitted.

To assist with making updates, we are offering an optional compliance assistance service at an annual fee of $95 per entity. This fee includes the following:

  1. Reminders. As mentioned above, updates must be made within 30 days of certain events.  Our service will include a monthly reminder to review your records for any needed changes.
  2. Document retention. Subscribing to our annual service includes the retention of the government identification and other relevant documents in our filing system to facilitate future updates. This eliminates the need for beneficial owners to resubmit identification documents if they have not changed, for example. If you do not choose the annual compliance assistance service, we will delete these records from our system.
  3. Discounted update reports. We will be able to file necessary updates on your behalf at a discounted minimum fee of $195 per entity.  Otherwise, any changes must be treated as new filings and will be subject to the associated fees (currently a minimum of $395 as indicated above).

Due Dates

Entities created before January 1, 2024, are required to file by December 31, 2024. Entities created between January 1, 2024, and January 1, 2025, are required to file within 90 days from creation or registration. Entities created after January 1, 2025, will have 30 days to file their beneficial ownership information.

We are available to assist you with questions and concerns you may have as you navigate this new filing process and requirement. Please contact Julie Clark at 503-391-1040 or Julie.clark@jhadvisors.com for assistance, with questions, or to begin filing your BOI Report. Please notify our office if you choose to file this report independently to ensure our records are updated.

Thank you,

Jamison Hanson

The Tradesperson

Carl didn’t have to go to college to carve out a solid career. He’s skilled at what he does, puts in hard work every day, and has the callouses to show for it. That competence and reliability have paid off in making him an asset to his employers, so the income he brought in over the years coupled with a commitment to living beneath his means has allowed him to create a nice nest egg. “I’m starting to feel the years,” he told me. “That’s the tradeoff for doing work you enjoy, I guess. I’m looking forward to another ten years on the job, but my body might have other ideas.” Carl confessed that his back was starting to feel stiff some days. He wasn’t in pain or injured, but it was taking him a little longer to loosen up in the morning, and he was ready to hit the couch when he got home at night. He wanted to make sure he was protected. “I’d rather have a stiff back from wiring a building than sitting at a desk all day,” he joked as I shifted in my desk chair and laughed. “But I want to make sure we’ll be okay in case I have to hang up my gear earlier than planned.” With a son in college to become an engineer and a teenage daughter who plans to follow in her father’s footsteps by learning a trade, he and his wife, an RN, still have tuition and child rearing expenses to cover. But they’ll be empty nesters soon, and he wonders if downsizing their lifestyle could leave them with more options in the long run. Other than setting money aside regularly, he’s not familiar with investing or tax strategies. So he doesn’t know where to start. “We’re not extravagant people, but we chose a good school district and mortgage to go with it. When the kids are gone, Sheri and I are thinking it might be easier on the budget and more enjoyable to move out of the suburbs into a smaller house with some land.” “That sounds like you’d be living the dream, Carl,” I said. I knew we could make some adjustments to give him the freedom to retire earlier if need be. “Your toolbox is different from mine, let’s make sure you have the tools you need in place to be comfortable in retirement.”

Primary Concerns

How We Helped

The Widow

That’s why there’s no time like the present to meet with an attorney and get your documents updated to make sure they are in good order. The eventual (if not immediate) need for a power of attorney, and health care proxy to be filed is of the utmost importance. Heart disease is one of the leading causes of death in America. And although we know this to be true, it seems that dementia is right up there with the clients we help. The onset is often young (late 50’s, early 60’s), and to date, there is no cure, no surgery to be done. “We’re coming to see you,” Laura said. “Just so you know, he is having some memory issues and is having some testing done. Please don’t mention the ‘D’ word in front of him. It’s early in the process for him, and he knows what it means and what the outcomes are.” We had a conversation, the three of us. His comprehension was good, but there were differences. I checked my notes as to the last time their wills were updated… it had been a while. On a subsequent visit, Laura let me know she was having difficulty grasping the enormity of the potential expense to care for him. By choice, long-term care insurance had not been part of their plan. She was now projecting the harsh realities around the cost of care, not to mention the taxes on their IRAs to access those funds. “He has life insurance,'' she said, “but it expires in 5 years. I can’t stop feeling awful, but I’m counting on that being there for me, assuming I have to use our retirement assets to pay for care.” “It’s not selfish; it’s survival,” I said. “Remember, your goal is to provide him great care while he’s alive. His goal was for the two of you to enjoy your lives together. He would be upset if, after 40 years of professional work, you spent all of it on him.” By the end of our conversation, she understood that the death benefit is for the survivor, not the person whom the policy is on. As to the timing of it, my experience is that spouses who survive their loved ones have already mourned the very essence of their being, well before their bodies have given up. The willingness to do what is right for him now will somehow be balanced out later. She still maintains the family home, stays close to her children and lifelong friends, and travels when she can. Because of our work together, Laura is more at ease and confident in her financial future.

Primary Concerns

How We Helped

The Single Mom

Life doesn’t always go as planned, but the more dedicated, disciplined, and prepared we are, the better financial future we can enjoy—no matter the circumstances. Paige had been to a presentation I did about her workplace benefits. The company was having on-again, off-again “reduction-in-force” offers to take an early retirement, or to simply leave. When I answered the phone, the caller sounded a little nervous. She had never met with an advisor before, but after attending the presentation, she thought I might be able to help her. She started working at the phone company right out of high school. A few years later, she was married, and soon after that, well, you know those newlyweds! By the time her daughter was five, her husband had left. It turned out, fatherhood wasn’t for him… nor was consistently making child-support payments. That didn’t stop Paige from working and raising her daughter to become a healthy, productive adult, or from making her 401(k) contributions. As the years went by, she had questions. “Am I saving enough? Do the investments make sense? How am I going to pay for college? Can I afford to buy a new car when I retire? Should I pay off my mortgage? The dream trip to Tuscany… is it doable?” She looked to me for advice and guidance. I admired (and still do) her commitment to providing for her daughter and her consistent resolve to save and invest for her future retirement. Paige accomplished a lot—a whole lot, really. But the best offer yet from her company came in her mid-50’s. She had been saving, waiting, for this moment for over 30 years. It was scary—no, intimidating, for her to really contemplate not having that paycheck, paid vacation, and benefits. “How do I evaluate the early retirement offer?” she asked. “How will I live? Where will I get money from? Will I pay taxes on my retirement? What about the company stock?” “You know,” I said, “we’ve talked about this many times. You did some great prep. Work with me.” “I know,” she said. “But big decisions like this are stressful, especially with the deadlines. And I know you can explain it to me again so I can be confident in my decisions.” Paige did take that offer. She works part-time now and spends one to two days a week caring for her parents. “Do they have health care proxies, powers of attorney, and wills?” I asked. She laughed, “Does it ever end with you?” As long as time marches on and the world keeps changing, then no, it never really ends. The topics of conversation and how I am trying to help keeps our relationship fresh.

Primary Concerns

How We Helped

The Married Couple

Corrine retired first. One of the largest razor blade companies was headquartered in Boston, and they treated their employees well. A pension combined with a 401(k) match in the form of a stock that did very well gave her a comfortable nest egg and monthly income…not to mention a Medical ESOP plan. Her husband Ed retired many years later. An employee of the federal government, he wanted to work longer to increase his pension benefit. He too did well with his Thrift Savings Plan (TSP). But he had some credit card debt, so we devised a strategy to pay it off over two tax years, using vacation buyout money at retirement and TSP funds the following tax year. The couple had been clients of mine for several years, and he had put off retiring more than once. When I saw them call in, I figured he was calling to let me know he had finally decided to retire. Unfortunately, he was calling to let me know that his son died very prematurely. They came in, still reeling from grief, to discuss what they wanted to do next. Corrine and Ed come from a small island nation where family customs favor the eldest son. At the time of his death, he had two young children, the older of which was two and the other only months old. “We want to provide for our grandchildren,'' they said, “to make sure they can be educated when the time comes.” Neither Ed nor Corrine had attended college, but they made sure their sons did, and now, in their son’s absence, they will provide for his children. Given their young age, I suggested they speak with a local estate planning attorney to see if she thought setting up some type of trust to put assets in (and to name as a beneficiary) would help them accomplish their goals. She agreed, drafted the relevant documents, and they are now comforted by having a plan in place. Their son’s death triggered Ed to retire immediately. He and his wife now care for their grandchildren daily when their mother goes off to work. Their involvement in the grandchildren’s lives helps to ease their pain, pass on family values, and keep the legacy of their son alive.

Primary Concerns

How We Helped