Beneficial Ownership Information Reporting (BOIR)
Updates to BOI Reporting Requirements:
December 23, 2024 - The Financial Crimes Enforcement Network (FinCEN) ruled that the BOI reporting requirement be reinstated. Updated reporting deadlines are as follows:
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Reporting Companies formed prior to 2024 have an extended deadline of January 13, 2025.
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Reporting Companies formed after January 1, 2025 will have 30 days to complete their BOI reporting.
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Reporting Companies formed between September 4, 2024 with the original deadline between December 3, 2024 and December 23, 2024 have an extended deadline of January 13, 2025.
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Reporting Companies formed between December 3, 2024 and December 23, 2025 have an extended deadline of 21 additional days from their original filing deadline.
December 3, 2024 - A preliminary injunction blocking the BOIR has been issued by the U.S. District Court for the Eastern District of Texas.
A nationwide court injunction has temporarily stopped the enforcement of the Corporate Transparency Act (CTA) and its related rules. This means business owners are not currently required to meet the CTA’s reporting requirements or provide ownership information to FinCEN by January 1, 2025. For now, the federal government cannot enforce penalties or demand compliance with the CTA until further legal decisions are made about its constitutionality and enforcement.
Beneficial Ownership Information Reporting (BOIR) is a process where certain businesses, called "reporting companies," must provide details about their owners to the Financial Crimes Enforcement Network (FinCEN). The goal is to identify individuals who own or control the company to prevent illegal activities like money laundering and fraud. Companies need to submit specific information, such as names, addresses, and other identifying details about their beneficial owners and, in some cases, company applicants. The information must be accurate, updated promptly if changes occur, and filed electronically through FinCEN’s system. Deadlines for filing depend on when the company was created, and corrections must be made quickly if errors are found. This reporting helps promote financial transparency and accountability.
What You Must Do & When:
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If a reporting company existed before January 1, 2024, it has until January 1, 2025 to file its initial BOIR.
(See updated deadline above)
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If a reporting company is created or registered to do business between January 1, 2024 and December 31, 2024, it must file its initial BOIR within 90 days after receiving actual or public notice that its creation or registration is effective.
(See updated deadlines above)
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If a reporting company is created or registered to do business on or after January 1, 2025, it must file its initial BOIR within 30 days after receiving actual or public notice that its creation or registration is effective.
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If there is a change to or inaccuracy in the required information about a reporting company or its beneficial owners in a BOIR that a reporting company filed, the reporting company must file an updated BOIR no later than 30 days after the date in which the change occurred or inaccuracy was found.
Why You Must Do It:
Failure to comply will result in a fine of $500 per day and criminal penalties including a $10,000 fine and/or up to two years of imprisonment. (FinCEN - BOI Filing Penalties)
Compliance with BOIR requirements is crucial for maintaining transparency and deterring illicit financial activities. These filings support FinCEN's efforts to combat money laundering, terrorism financing, and other financial crimes.