Exempting a customer from CTR's and filing a DEP. Can we backdate the Initial Exemption Date on the DEP to March 2006? CTR's have been filed to the present, but we try to keep our renewal dates to March. Or, can we file a biennal renewal in March 2007 even though they're being officially exempted in July 2006.

Do not back date any form you are filing with FinCEN.

File your DOEP now with the correct date. If want all of your exemptions to come due in March, then revoke it in March. On the following day, file another DOEP, thus beginning the time frame anew.

Yes, this is silly. However, if you file today and then "short pit" by filing a renewal in March it fouls up their computer system. File, revoke, and then file again in the time frame you want for compliance management purposes. (Obviously, the second ODEP filing will have to be documented as if it was the first.)

Any encouragement I can offer to use the exemption process is based on the assumption that you can establish it is cost justified.

Because of the DEP expirations built into the exemption process, I'm not sure why the initial date of exemption would matter. They will all expire on 3/15 biennially regardless of the initial date of exemption. But I definitely concur with our guru, Ken. Never fudge on your FinCEN forms.

FinCEN FAQ Question 15: If the initial “Designation of Exempt Person” form (“DEP”) for a non-listed business (or payroll customer) was filed in July 2000, is the biennial renewal date March 15, 2001 or March 15, 2002?

Answer 15: If you filed a DEP form with respect to a non-listed business or payroll customer in July of 2000, the filing deadline for biennial renewal is March 15, 2002 (assuming all applicable criteria listed in 31 CFR § 103.22 (d)(2)(vi) and (vii) still applies to the entity).(10/2001)

Brenda's obviously correct. I assumed something that you did not say, that you wanted your annual reviews in the same time frames; i.e. March. The method I described acomplishes that.

However, any Phase II exemption is going to come due in March every other year no matter when you file your first DOEP.