Business owners must file new data by Jan. 1, 2025
MINNEAPOLIS (Nov. 1, 2024) — The clock is ticking for certain businesses to file new reporting data with the Financial Crimes Enforcement Network (FinCEN). Noncompliance can cause business owners to face civil and criminal penalties — $500 per day the violation continues and up to two years of imprisonment.
Of the expected 32.6 million reports to be filed by Jan. 1, 2025, estimates show only 5 million reports have been filed with less than three months until the deadline.
The
Beneficial Ownership Information (BOI) framework, established under the Corporate Transparency Act (CTA) of 2021, requires the disclosure of BOI data to FinCEN.
“Timely beneficial ownership information reporting is very important for companies required to file with potentially large penalties for those who don't comply,” said Steve Warren, CPA, senior manager at Schechter Dokken Kanter CPAs.
This initiative empowers FinCEN to gather and distribute beneficial ownership details to law enforcement agencies, financial institutions and authorized entities, thus enhancing transparency and reducing opportunities for individuals to conceal or profit from illicitly acquired assets.
Companies referred to as “reporting companies” are required to report their beneficial ownership information to FinCEN. There are two types of reporting companies — domestic reporting companies and foreign reporting companies.
There are 23 types of entities that are exempt from the reporting requirements. Carefully review the
qualifying criteria before concluding that your company is exempt.
What information do companies need to report?
- Full legal name of the reporting company or any trade or DBA names.
- Business address.
- State or Tribal jurisdiction of formation or registration.
- IRS TIN.
- Information about its beneficial owners, and for newly created companies, its company applicant(s), including name, birthdate, address and unique identifying number and issuing jurisdiction from an acceptable identification document.
Business owners are encouraged to file these reports themselves or reach out to your CPA for advisement. Regardless of how the reports are filed, it’s important to meet the Jan. 1, 2025, deadline.
Beginning in 2025, newly created or registered companies will have 30 days to file BOI reporting with FinCEN.
Key resources:
Connect with a CPA
CPAs are a good starting to point to meet business filing requirements of all varieties. Don’t have a CPA?
Find one in your area.
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