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#604069 - 08/23/06 07:47 PM Biennial renewal filing date
HR Banker Offline
Diamond Poster
Joined: Oct 2002
Posts: 1,027
I need some clarification on biennial renewal. We exempted a customer in Feb. 2006. When is the biennial renewal due? I thought Mar. 2008 but during an external audit it was mentioned that it will be due Mar. 2007 since it was filed before March 2006. They said if the original exemption would have been April 2006 the biennial renewal would be Mar. 2008.

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#604070 - 08/23/06 08:38 PM Re: Biennial renewal filing date
Kelsey D Offline
Platinum Poster
Joined: Aug 2006
Posts: 516
Ohio
I agree with you that it should be 2008, which is the second calendar year following the year in which the first designation was made, as specified in the BSA. See 31 CFR 103.22 (d)(5)(ii).
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#604071 - 08/23/06 08:59 PM Re: Biennial renewal filing date
nk78 Offline
Member
Joined: Aug 2006
Posts: 67
Illinois
It should be March 2008. Your auditor is wrong.

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#604072 - 08/23/06 09:06 PM Re: Biennial renewal filing date
Dip Offline
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Dip
Joined: Mar 2005
Posts: 6,298
San Diego, CA
auditors do that sometimes. i had one try to tell me we had an expired w-8. I pulled up the IRS instructions, drew it out on a timeline, and showed her how to figure out when to re-file.
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#604073 - 08/24/06 02:20 PM Re: Biennial renewal filing date
HR Banker Offline
Diamond Poster
Joined: Oct 2002
Posts: 1,027
Here is the auditor's thinking. If the original designation was Jan. 2006 then two calendar years would be up in Jan. 2008 and if we waited until March 2008 for the biennial review then we've waited longer than 2 calendar years. I guess it would depend on the definition of calendar year. Any thoughts?

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#604074 - 08/24/06 02:30 PM Re: Biennial renewal filing date
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
The designation of a non-listed business or a payroll customer as an exempt person must be renewed biennially, beginning on March 15 of the second calendar year following the year in which the first designation of such customer as an exempt person is made, and every other March 15 thereafter...

The initial designation was filed on a date in 2006. The second calendar year following 2006 is 2008. The renewal, therefore, is due by 3/15/2008.

You reach the same renewal date conclusion for any initial filing date in calendar year 2006, from January 1 through December 31.

The regulation is not saying "by the last March 15 that is less than 2 years from the designation date."
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#604075 - 08/24/06 02:52 PM Re: Biennial renewal filing date
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
...and there is only one possible definition of a calendar year.
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#604076 - 08/24/06 03:12 PM Re: Biennial renewal filing date
HR Banker Offline
Diamond Poster
Joined: Oct 2002
Posts: 1,027
Thanks everyone for your input. FYI: I've found that FinCEN's website has an exact example of my question in the FAQs (question #15).

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#604077 - 08/24/06 03:40 PM Re: Biennial renewal filing date
rdelgado Offline
100 Club
Joined: Dec 2005
Posts: 116
They probably confused/blurred the requirement with the MSB registration renewal process.

Their assessment sounds eerily similar to those requirements.
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