New Treasury Rules Mean Huge PF Changes

A new set of rules announced by the U.S. Treasury Department in May will force payment facilitators to reveal not only who owns a company, but also whoever controls and/or manages it. This will mean a lot more information will have to be revealed about charities, non-profits and other PF-friendly businesses. The new rules requires that each owner who has more than 25 percent of ownership must be identified, along with anyone who controls or manages the operations, whether or not they are an owner. On the plus side, these rules are not retroactive and won’t even start kicking in until July 11, 2016, with required implementation not happening until May 11, 2018.

 

What are the key PF implications? “PFs that deal in small mom and pops will have no change when there is one owner and she/he is in control,” said Deana Rich, head of Rich Consulting. “PFs will have a big change if there are two owners-such as a husband and wife each with 50 percent. In the past, only one was necessary. Now it will be two. But there’s an added string. If their kid runs the business, now (the son/daughter) will be required to be IDed as well.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s