As the year draws to a close, if you are a business owner you should be aware of the recent requirements to file a BOIR. If this is new to you or you just haven’t got around to it yet, I wanted to take a moment to provide you with the necessary information.
To combat financial crimes like money laundering and enhance corporate transparency and accountability, the Corporate Transparency Act of 2021 (CTA) introduced a new filing requirement: the Beneficial Ownership Information Report (BOIR).
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What Is the BOIR?
The BOIR is a critical compliance measure under the CTA, designed to ensure businesses disclose their beneficial ownership details to the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of the Treasury. Entities required to file include corporations, LLCs, partnerships, and potentially certain sole proprietorships.
The filing process is straightforward, free of charge, and can be completed quickly on FinCEN’s website. Staying compliant is vital to avoid significant penalties, so make sure you’re aware of the deadlines.
Key Deadlines for Filing
- Businesses formed before January 1, 2024: File your BOIR by January 1, 2025.
- Businesses created on or after January 1, 2024: File within 90 calendar days of formation.
- Businesses formed on or after January 1, 2025: File within 30 calendar days of formation.
Penalties for Non-Compliance
Failure to meet the reporting deadlines can result in severe financial consequences. As of April 18, 2024, businesses found in willful violation could face daily civil penalties of $591, with the amount adjusted annually for inflation.
How to File
Submitting your BOIR is easy and cost-free. To begin, visit FinCEN’s official website at https://www.fincen.gov/boi.
For additional details or answers to common questions, check out the FinCEN FAQ page at https://www.fincen.gov/boi-faqs.
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