Corporate Transparency Act Mandatory Filings
As of January 1st, 2024, the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) began accepting all required Beneficial Ownership Information Reports (BOI reports). The passing of the Corporate Transparency Act SEC. 6401 is intended to “help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activities.” The Corporate Transparency Act mandates reporting to FinCEN for each entity currently in existence and for each new entity created. The BOI reports require entities to identify the beneficial owners and all individuals who have filed an application with a specified governmental authority (including Secretary of State).
What does this mean for you and your business?
An entity that was created prior to January 1st, 2024 will have until December 31st 2024 to file the BOI report with FinCEN. Entities are now required to have a complete BOI report filed and will be required to maintain the correct information with FinCEN, by providing updates to any information on the report within 30 days of change.
Any entities created after January 1st, 2024, and before January 1st, 2025, will have a 90-day window to file the BOI report, and entities created after January 1st, 2025, will have a 30-day window for filing. If you do not file within the timeline or provide incomplete or inaccurate information on the BOI report companies may be subject to a penalty of up to $10,000 and two-year imprisonment.
Any entities created after January 1st, 2024, and before January 1st, 2025, will have a 90-day window to file the BOI report, and entities created after January 1st, 2025, will have a 30-day window for filing. If you do not file within the timeline or provide incomplete or inaccurate information on the BOI report companies may be subject to a penalty of up to $10,000 and two-year imprisonment.
We are here to help.
Our firm is here to help, and in anticipation of this new law, we have extended our services to include a new client service – Business Compliance Solutions, our way of helping our clients meet FinCEN and state compliance requirements. Attached is an outline of our Business Compliance Solutions plan. If you would like us to assist your business in maintaining compliance, please contact our office.
If you or your entity do not want our firm to handle these filings, it is important that you follow the strict guidelines of the Corporate Transparency Act when filing the BOI report. We have included the FinCEN instructions here.
If you or your entity do not want our firm to handle these filings, it is important that you follow the strict guidelines of the Corporate Transparency Act when filing the BOI report. We have included the FinCEN instructions here.
Please also note the following warning posted by FinCEN:
FinCEN has been notified of recent fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. The fraudulent correspondence may be titled “Important Compliance Notice” and asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. FinCEN does not send unsolicited requests. Please do not respond to these fraudulent messages, or click on any links or scan any QR codes within them.
