Beneficial Ownership Information Reporting Is Now Required
Starting on January 1, 2024, Beneficial Ownership Information (BOI) reporting is now required by the Corporate Transparency Act. Many small businesses will be required to file a report under the BOI reporting requirements. BOI reports will be filed with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
If your company is required to file a BOI report, the due dates are as follows:
Initial reports for companies that existed before Jan. 1, 2024 are due on or before Jan. 1, 2025.
New companies formed after December 31, 2023 have 90 days to file their BOI from the date they are formed.
If your company is required to file a BOI report, it must be filed once, then only filed again if there are changes. It is not an annual reporting requirement.
FinCEN created a Small Entity Compliance Guide to assist companies in determining if they are required to file. An informational page is available here, and a FAQ’s are available here. Reports can be filed with FinCEN here.
As noncompliance with this filing requirement can result in penalties and possible imprisonment, I strongly encourage you to review your company’s filing obligation under these new rules as soon as possible. The BOI filing is outside of the scope of our normal tax and financial reporting engagements and thus, we will not handle filing the BOI reports but wanted to make you aware of the new filing requirement.
