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#2275341 - 09/09/22 04:55 PM CTR entity question
Auditgal Online
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If one employee makes a transaction on behalf of the entity they work for - should the Part 1 2c just be for the entity itself? I have someone saying that all owners of the entity (both and LLC and another an Incorporated) have to be in the Part 1 also and listed as 2c along with the entity itself.

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#2275342 - 09/09/22 05:03 PM Re: CTR entity question Auditgal
SmallBankBSA Offline
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The employee who made the deposit is 2b - person conducting transaction for another, the entity is 2c - person on whose behalf transaction was conducted. You don't list all owners of entity on the CTR.

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#2275343 - 09/09/22 05:22 PM Re: CTR entity question Auditgal
rlcarey Online
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Auditgal - Ask whoever is telling you that as to what do they suggest that you do when the corporation or LLC has 100 or more stockholders or members?
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#2275344 - 09/09/22 05:30 PM Re: CTR entity question rlcarey
Auditgal Online
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That is exactly my thought as well.

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#2275345 - 09/09/22 05:32 PM Re: CTR entity question Auditgal
Auditgal Online
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Another question on sole proprietorships -
Husband and wife are on the business account. Daughter comes in and makes the transaction. For the CTR, is the part I 2c on the name of the business or the owners of it? If it's the latter then I would suppose you would have to include both parents?

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#2275350 - 09/09/22 06:08 PM Re: CTR entity question Auditgal
rlcarey Online
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Well, a husband and wife is not a sole proprietorship. So, what do you mean they are both on the business account?

If it is a sole proprietorship, then you have this: https://www.fincen.gov/sites/defaul.../2020-02-10/FinCEN_CTR_Form112_508_1.pdf
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#2275399 - 09/12/22 03:41 PM Re: CTR entity question Auditgal
John Burnett Offline
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If state law allows spouses to jointly own and operate a sole proprietorship (Oklahoma is an example), they are a sole proprietorship. However, the account is owned by the two individuals, not by the business. Therefore:

1. If Spouse 1 makes a reportable cash deposit to the business account, the CTR is completed as you would for a personal joint account of the spouses, except you include the DBA name (if any) in item 8 of Part I.

2. If a non-owner of the business (let's say it's the owners' daughter) makes a reportable transaction, you would complete a Part I for the daughter as conductor (with item 2b checked), a Part I with 2c checked for Spouse 1 and a Part I with 2c checked for Spouse 2. Include the DBA name in item 8 on the Part I section for each owner.
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#2275416 - 09/12/22 06:34 PM Re: CTR entity question Auditgal
John Burnett Offline
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I should add, for those bankers who have set up sole prop accounts with an EIN that the owner obtained because they have to report and forward payroll taxes and withholding taxes or make certain excise payments, you should be using the owner's SSN on the sole prop account, and when you file a CTR for transactions in the account, use the owner's SSN to complete the TIN field, not the EIN.
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#2275432 - 09/12/22 07:27 PM Re: CTR entity question Auditgal
John Burnett Offline
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Also note that the link Randy provided in his 9/9/22 post is to one of the CTR filing instructions changes that FinCEN issued on the eve of the pandemic that it subsequently suspended if you had not already put it into practice. If you are using those February 2020 instructions, ignore my posts just above. If you aren't using them, ignore the linked instructions and read my posts.
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#2275629 - 09/15/22 07:26 PM Re: CTR entity question Auditgal
Auditgal Online
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A lot of good information - thank you!

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#2278235 - 11/28/22 02:42 PM Re: CTR entity question rlcarey
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Just reviewing the guidance for DBAs and just saw footnote #7 stating if there are multiple alternate names we should be completing multiple page 1s. Just want to confirm that I'm reading that correctly.

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#2278266 - 11/28/22 09:27 PM Re: CTR entity question Auditgal
John Burnett Offline
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Is this the guidance that was issued for implementation in February 2020? If so, FinCEN put that on hold just as the pandemic began, unless a bank had already adopted and implemented the guidance.

Yes, you are reading it correctly.
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