Beneficial Ownership Information (BOI) Reporting Requirements: What You Need to Know
In an effort to increase transparency and combat financial crimes like money laundering and tax evasion, the U.S. government has recently introduced new Beneficial Ownership Information (BOI) reporting requirements. Under the Corporate Transparency Act (CTA), businesses are now required to disclose their beneficial owners—the individuals who ultimately control or benefit from the company— to the Financial Crimes Enforcement Network (FinCEN).
Key Highlights of the BOI Reporting Requirements:
Who Must Report: Most domestic and foreign companies registered to do business in the U.S. will need to file a report, with exceptions for large, heavily regulated entities like certain public companies and regulated financial institutions.
What Must Be Reported: Companies must disclose detailed information about their beneficial owners, including names, dates of birth, addresses, and unique identification numbers (such as passport or driver’s license numbers).
Deadlines: New entities must file their BOI report when they register with FinCEN. Existing companies have until January 1, 2025, to comply with the new reporting requirements.
Penalties for Non-Compliance: Failure to comply with BOI reporting can result in significant fines—up to $500 per day, with maximum penalties of $10,000.
Why This Matters
The BOI reporting requirements aim to close gaps in the financial system and help authorities trace illicit financial activity. For business owners, this means staying on top of new regulations and ensuring compliance to avoid penalties. It's important to act now and prepare for these changes if you haven’t already.
At Urban Tax we’re here to help guide you through these new requirements and ensure your business remains compliant. Contact us for assistance with BOI reporting and other regulatory changes!
