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Best Answer Click here
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I suspect those are rules not rukes!!
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Good question! Or, could it also reduce (bifurcate) the ownership interest? Federal law verses state law over property rights?
Don't know answer but link below discusses 'substantial control' which may have an impact (i.e., when the non-owner spouse has ownership/control rights?). You might look for articles by law firms in those states to see what they considered.
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What is a person to do when they aren't sure about the rukes? 😉 They do call it "beneficial ownership" so the spouses could get sucked in under those terms. But then again, if you make a good faith effort to file using the actual shareholders for a law abiding taxpayer, are the feds going to start doing raids on businesses in community property states because spouses were left off the reporting form?
Slava Ukraini!
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A case in point is FinCEN’s latest update to its FAQs. On page 28 of the update released on October 3, FinCEN dropped in this new FAQ D.18:
If one spouse has an ownership interest in a reporting company, is the other spouse also considered a beneficial owner if the reporting company is created or registered in a community property state?
Possibly. Whether State community property laws affect a beneficial ownership determination will depend upon the specific consequences of applying applicable State law. If, applying community property State law, both spouses own or control at least 25 percent of the ownership interests of a reporting company, then both spouses should be reported to FinCEN as beneficial owners unless an exception applies.
Quoted at
https://eminutes.com/fincen-the-community-property-conundrum
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I doubt it, but there are some spouses who might do some major complaining!
