11/15/2024
Are you compliant? Several of my clients have sent questions regarding the Corporate Transparency Act and the new BOI reporting requirements, so I wanted to take a moment to share some information with you.
The CTA was enacted in 2021 in an effort to combat illicit activity including tax fraud, money laundering, and financing for terrorism. The intent is to do this by capturing more ownership information for specific U.S. businesses. Under the 2021 legislation, businesses that meet certain criteria must submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). This report provides details identifying individuals who are associated with the reporting company. Worth noting, it has been held that neither HOAs or nonprofits are exempt from these requirements.
The Corporate Transparency Act (CTA), which went into effect in January of 2024, likely requires your small business to report information about ownership to the government. For most eligible businesses, the filing deadline is January 1, 2025, and there are stiff penalties for failure to comply.
Filing the forms is outside the scope of services I am able to provide, so if you have any questions, I would suggest you speak with your attorney.
Worth noting, it is not a long or complicated form. I filed the report for my own business. It was extremely simple, and only took about 10 minutes.
I have attached a one page sheet to provide you with more information, and references to where you can find additional information about this requirement. It also contains a link to the FinCEN site where you can access FAQs and file the required forms.
