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#1809623 - 04/30/13 09:51 PM New SAR Form for DBA
Compliance Lover Offline
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I'm know this has been addressed somewhere, but I can't put my finger on it. If a sole proprietor/DBA account has a Tax ID number, is it correct to complete the SAR with the individual's SSN and then add the Tax ID number in the narrative on these new forms?

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#1809641 - 04/30/13 10:54 PM Re: New SAR Form for DBA Compliance Lover
Elwood P. Dowd Offline
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The instructions from the FinCEN CTR webinar are pretty specific; you are directed to use the sole proprietor's SSN. I have not seen a similar instruction for the SAR, but it's what I would do regardless. (It's the individual who is your subject.)

The sole proprietor has an EIN its for wage withholding, nothing else. The better practice is not to accept it for CIP or information reporting purposes, but to insist on receiving the owner's SSN. The most air time the EIN should receive in a SAR on a sole proprietor is a mention in the narrative.
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#1810266 - 05/02/13 04:41 PM Re: New SAR Form for DBA Compliance Lover
downbytheriver Offline
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Posts: 51
Georgia
I'm a little confused here. So if we are reporting a DBA on the new SAR you are saying that we should not check "entity" and should use the individual's personal information and SSN, complete the DBA name and only mention the EIN in the narrative? I just want to be consistent with how this is being reported going forward as this is a continuing report.

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#1810275 - 05/02/13 04:49 PM Re: New SAR Form for DBA downbytheriver
Elwood P. Dowd Offline
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No problem. The issue is dealt with more clearly in CTRs and I'm suggesting there is no logical reason to deal with it differently on a SAR. Please call the Helpline to review if you are uncertain:

From the CTR instructions:

Item *4 Individual's last name or entity's legal name: Enter the individual's last name or the entity's legal name. The entity legal name is the name on the articles of incorporation or other document that established the entity. If an entity is being recorded in Part I, check box 4 “If entity.” Do not check box 4 “If entity” if the person involved in the transaction is a sole proprietorship.

From the FinCEN CTR Webinar:

Q: How do I complete a FinCEN CTR when the person on whose behalf the transaction is conducted is a sole proprietorship?

Scenario:
Customer A withdraws $15,000 in cash from an account that belongs to Customer A’s sole proprietorship.
The financial institution would file a CTR and complete a Part I on Customer A by selecting Item 2a (Person conducting transaction on own behalf). The last and first name of the sole proprietor would be entered in Items 4 and 5, respectively, and include the sole proprietorship’s DBA name in Item 8 “Alternate Name Field” if applicable. Only one Part I would need to be filled out in this scenario as Customer A is a sole proprietorship and consistent with the definition of “person” in the Bank Secrecy Act’s implementing regulations, a sole proprietorship is not a separate legal person from its individual owner. Thus, the financial institution is required to complete the remainder of Part I, by entering the owner’s social security number (“SSN”), home address, date of birth, and occupation. Only one Part I is required, even if the business operations have a different address and/or tax identification number (“TIN”) than its owner.


It took FinCEN a couple years to figure out that a sole proprietorship was not a "person," but they've got it down now.
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#1810397 - 05/02/13 06:48 PM Re: New SAR Form for DBA Compliance Lover
rlcarey Online
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The SAR instructions are really not that much different:

6. Alternate name, e.g. AKA - Individual or DBA - Entity
Item 6 Alternate name: Enter the individual's also known as (AKA) name or the entity's doing business as (DBA) name if different from the name entered in Items 3-5. Do not include the acronyms AKA or DBA with the name. Multiple Item 6 fields may be completed if multiple subject alternate names are known.
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#1810409 - 05/02/13 07:04 PM Re: New SAR Form for DBA Compliance Lover
downbytheriver Offline
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Joined: Jan 2008
Posts: 51
Georgia
Thanks for everyone's help!

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#1829861 - 07/02/13 07:35 PM Re: New SAR Form for DBA Compliance Lover
TryingtoComply Offline
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Joined: Apr 2013
Posts: 1,996
The West
I just want some clarification on this. Back in the old days, we prepared a separate section for the fictitious business name as the address for the business might be different from the sole proprietor's.

So, are we saying that with the new CTR and SAR, we only need to complete one section on the sole proprietor and indicate the FBN? Which address are we supposed to report? The SP's personal address or the business address? Should we report the SP's personal address in the form and indicate the business address in the narrative?
Last edited by TryingtoComply; 07/02/13 07:44 PM. Reason: Typo
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#1829869 - 07/02/13 07:47 PM Re: New SAR Form for DBA Compliance Lover
TryingtoComply Offline
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I'm reading too fast today......I see now that the instructions state: Thus, the financial institution is required to complete the remainder of Part I, by entering the owner’s social security number (“SSN”), home address, date of birth, and occupation. Only one Part I is required, even if the business operations have a different address and/or tax identification number (“TIN”) than its owner.

I'm working on a case where I believe it would be beneficial for law enforcement to know the business location. I'll just mention it in the narrative.
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#1840712 - 08/08/13 04:55 PM Re: New SAR Form for DBA Compliance Lover
Beachbum, CRCM Offline
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taking the FinCEN instructions offered by Ken above, how would you suggest Part I be completed if there are multiple transactions, 2 from the Sole prop and 1 from an employee?
10,300.00 deposited by Sole Prop and 14,000.00 by employee.
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#1840723 - 08/08/13 05:12 PM Re: New SAR Form for DBA Compliance Lover
rlcarey Online
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You would just have an additional Part I for the employee. Are you talking CTRs?
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#1840777 - 08/08/13 05:50 PM Re: New SAR Form for DBA Compliance Lover
Beachbum, CRCM Offline
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Knee Deep in Regs
yes, CTRS.
So I would list the enitre day's deposit amount under the Sole prop with an alternate name for the business and "conducted on own behalf" then list the employee as an additional part I with the amount he deposited?
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#1840787 - 08/08/13 06:08 PM Re: New SAR Form for DBA Compliance Lover
rlcarey Online
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rlcarey
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Galveston, TX
Correct.
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