December 5, 2024
BOI Filing Requirements
DON’T MISS BOI FILING REQUIREMENTS
GO wants to provide a friendly reminder about the Beneficial Ownership Information (BOI) reporting requirements. BOI refers to identifying information about the individuals who directly or indirectly own at least 25% of the company.
Breaking news on 12/5/24, FinCEN issued an alert that BOI reporting requirements have been affected by a recent federal court order. The Department of the Treasury is appealing against that order. In the meantime, reporting companies are not currently required to file a BOI reporting and are not subject to liability if they fail to do so while the applicable order remains in force. However, reporting companies may still opt to file a BOI reporting.
WHO MUST FILE
Unless your entity qualifies for an exemption, BOI filings are required for most business entities registered with the secretary of state including corporations and LLCs that have been inactive but not yet officially closed.
WHAT INFORMATION MUST BE REPORTED
- Each beneficial owner: full legal name, date of birth, current address, a passport or driver’s license, and an image of that identification document.
- A reporting company itself must provide its legal name, trade names, address, jurisdiction of formation, and IRS Taxpayer Identification Number (EIN).
WHERE TO FILE
On 01/01/24, FinCEN launched the BOI E-Filing website for reporting beneficial ownership information: https://boiefiling.fincen.gov
WHEN A REPORT IS DUE
- A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.
- A reporting company created or registered in 2024 will have ninety calendar days to file after receiving actual or public notice that its creation or registration is effective.
- A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.
WHY YOU SHOULD NOT MISS THE DEADLINE
In response to a federal court in the Fifth Circuit issued a national injunction halting the enforcement of Beneficial Ownership Information (BOI) filings by FinCEN, the U.S. Department of Justice filed a notice of appeal on December 7, seeking to lift the injunction and resume enforcement in 2025.
It is important to note that failure to comply with these requirements, should the appeal be successful, could result in significant civil and criminal penalties, including fines of up to $10,000 or potential imprisonment for up to two years.
DISCLAIMER
This is published information according to the current regulations. As noted in our engagement letter, BOI filing is not within the scope of services with GO. For assistance, you may wish to consult with your legal counsel or attorney.
Writer: Diem Bui, CPA, EA, MBA – Tax Manager
Editor: Stacy Rose, CPA – Senior Tax Manager
References:
https://boiefiling.fincen.gov/fileboir
https://www.aicpa-cima.com/news/article/aicpa-releases-statement-on-boi-injunction-fincen-appeal