The Statement of Information is a legal document that provides information about the business and its owners. It is a requirement for all businesses, including those incorporated in California or Nevada. This guide aims to help you understand what information must be included in your company’s Irvine Statement of Information and how to prepare it correctly.
What is a Statement of Information?
A Statement of Information is a document that requires you to list all your business interests and investments. It’s used to help identify potential conflicts of interest, which could arise if you or someone in your immediate family has an ownership stake in a company that may do business with the government.
The statement must be filed with the United States Office of Government Ethics (OGE) within 30 days after being appointed by an executive agency or elected official or if they become aware of any new information regarding their assets during this period.
The statement is a public document, and you can find it on the OGE website. The form requires you to list all your assets and income from the previous year, including real estate holdings, stocks and bonds (including mutual funds), retirement accounts, and trusts. You’ll also need to disclose any loans or debts that you have outstanding.
Who Has To File?
Every person who has a business in California or earns income from California sources must file an annual information return with the FTB.
The following are examples of entities that may have to file:
- Business owners, partners, and members of LLCs
- Partners, members, and shareholders of S corps, partnerships, and LLCs
- Individuals who are officers, directors, or 10%+ shareholders of C corps
What is the Filing Deadline?
The filing deadline for the Statement of Information is the same as that for your annual report. If you are not required to file an annual report, then you must file by the 15th day of the third month following the end of your fiscal year.
This means that if your fiscal year ends on December 31st, then you must file by March 15th. The penalty for failing to file on time has to be paid for each day after the due date that the form is late.
If you are a 501(c)(3) organization and have not filed Form 990, your tax-exempt status may be revoked. If you are revoked, then all assets of your organization will revert to the state where it is located.
What Happens if I Don’t File my Statement of Information in Time?
If you fail to file your statement of information in a timely manner, the CRA will send you a Notice of Assessment and a bill for any penalties and interest that have accrued since the due date. If this happens, we recommend that you pay all outstanding amounts immediately so that they don’t increase any further.
If you don’t pay on time, then it’s possible that criminal charges could be laid against you by Revenue Canada in addition to any penalties levied by them on account of late filing or non-filing (for example, failure by an individual taxpayer).
If this happens, you may want to consider hiring a tax lawyer for help. A tax lawyer can assist with all aspects of the CRA audit process, including:
- Preparing your defence against Revenue Canada’s allegations
- Filing an objection on your behalf if necessary, and
- Representing you at any hearings that may arise from your case.
The Statement of Information is a very important document, and it’s one that you should take seriously. If you don’t file on time, there are serious consequences.