BOI reporting lagging ahead of deadline
October 11, 2024 | Corey Butler
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 shy of 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.
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.
There have been concerns about potential unauthorize practice of law for CPAs assisting their business clients. Check with your professional liability insurance company if you’re concerned about this. Many Minnesota firms are offering this legally required service to their clients.
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.
Beginning in 2025, newly created or registered companies will have 30 days to file BOI reporting with FinCEN.
Key resources:
Topics: Clients, Regulation, Accounting & Auditing, Business & Industry, Taxation-Business
Corey Butler
Corey Butler is the MNCPA communications manager, working to enhance the professional reputations of members through content, media relations and public affairs. He's been with the MNCPA since 2013. Corey keeps busy outside of the MNCPA spending time with his wife and children, serving on his local school board, volunteering in his community and catching up on long-lost hobbies. Corey enjoys the works of John Steinbeck and Rankin/Bass Productions, and Paul Bunyan, Robin Hood and Santa Claus lore. You may reach him at 952-885-5530 or cbutler@mncpa.org.
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