Question: Is an entity that assists a tax-exempt entity exempt from filing a FinCEN Report?

Answer: An entity qualifies for this exemption if all four of the following criteria apply:

1. The entity operates exclusively to provide financial assistance to or hold governance rights over, any tax-exempt entity that is exempt from filing a FinCEN Report.

2. Is The entity is a United States person as defined in section 7701(a)(30) of the Internal Revenue Code of 1986.

3. The entity is beneficially owned or controlled exclusively by one or more United States persons who are United States citizens or lawfully admitted for permanent residence. “Lawfully admitted for permanent residence” is defined in section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a)).

4. The entity derives at least a majority of its funding or revenue from one or more United States persons who are United States citizens or lawfully admitted for permanent residence.

Source: Small Business Compliance Guide page 11.