Corporate Transparency Act - Beneficial Ownership Information Report (BOIR)

To all business owners, be sure to not let this Beneficial Ownership Information Reporting (BOIR) pass you by. It may have crippling consequences. The Financial Crimes Enforcement Network (FinCEN) provided information that I will highlight below.

In 2021, Congress enacted the bipartisan Corporate Transparency Act to curb illicit finance. This law requires many companies doing business in the United States to report information about who ultimately owns or controls them.

According to the act, Reporting Companies have deadlines to meet. 
Reporting Companies Filing Timelines

• If you created or registered to do business in the United States before January 01, 2024, Reports are due by January 01, 2025.
• If you created or registered to do business in the United States on or after January 01, 2024 and before January 01, 2025, have 90 calendar days after receiving actual or public notice that their company’s creation or registration is effective to file their initial BOI reports.
• If your company is created or registered on or after January 01, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.
• Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.

Now, let's talk about penalties for NOT filing your BOIR. As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. However, this civil penalty amount is adjusted annually for inflation. As of the time of publication of this information, the amount was $591.
A person who willfully violates the BOI reporting requirements may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
​
To be clear, the person who files the BOI Report on behalf of the company may be subject to the same civil and criminal penalties as the report company and its senior officers.

There are some exemptions to the BOI Reporting requirement that include:

• Tax-exempt entity exemption
• Inactive entity-exemption
• Subsidiary exemption

Tax Largie, Inc. will be happy to assist with the filing of this Report for a small fee. Contact us! We'll be happy to assist.