Updated BOI Reporting Requirement

Supreme Court Revives BOI Reporting: What You Need to Know

Yesterday, the U.S. Supreme Court issued an order reviving the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting requirements. This decision reverses the 5th Circuit Court of Appeals’ Dec. 26 stay that paused enforcement of the BOI reporting mandate.

Previously, reporting entities established before 2024 were required to submit their initial BOI report to the Financial Crimes Enforcement Network (FinCEN) by Jan. 13, 2024. However, the timeline for compliance remains uncertain, as FinCEN has not yet responded to the Supreme Court’s order.

The Supreme Court’s decision allows enforcement of the CTA to proceed until the 5th Circuit rules on its constitutionality. The CTA will remain in effect while the Supreme Court considers any future appeals related to the case.

We understand the uncertainty this may create for your clients and businesses. Rest assured, Tax Team of New England is closely monitoring the situation and will keep you informed of any updates or changes to BOI reporting requirements as they arise.

Thank you for trusting Tax Team of New England to keep you informed and prepared.

 

2024 Beneficial Ownership Reporting Requirement

BOI e-Filing Alert: Please note that beneficial ownership information reporting requirements have been affected by a recent federal court order. The Department of the Treasury is appealing that order. In the meantime, reporting companies are not currently required to file a BOIR 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 BOIR. More information is available on our website FINCEN BOI Report.

Current Due Date is January 13th, 2025

The Corporate Transparency Act (CTA) is intended to provide information to the U. S. Department of the Treasury on the ownership and control of companies in an attempt at transparency to prevent money laundering and other crimes.

  • Reporting timeline. Reporting begins January 1, 2024.
  • Reporting companies created or registered before January 1, 2024, will have one year (until January 1, 2025) to file their initial reports.
  • Reporting companies created or registered after January 1, 2024, will have 90 days after receiving notice of their creation or registration to file their initial reports.

More inforemation at: FINCEN BOI Filing.If you have an LLC or S-Corp and you wish to have Tax Team of New England file the report for you. The following documents will be required.

Required Documents:

Copy of Driver’s Licenses for each owner

Copy of Social Security Number for each owner

Copy of Proof of Residence Address

All these pictures need to be uploaded to our secure drop box in digital format as the report requires their attachment

 

Penalties for failing to file Beneficial Ownership Information (BOI) reports with FinCEN can include:

  • Civil penalties: Up to $591 per day for ongoing non-compliance
  • Criminal penalties: Up to $10,000 in fines and/or up to two years in prison
  • Fail to file the required information
  • Knowingly provide false or incomplete information
  • Willfully fail to provide accurate and complete BOI information
  • Intentionally report false information
  • Before January 1, 2024: BOI reports were due by January 1, 2025
  • 2024: BOI reports were due within 90 days of the effective date of registration
  • 2025 or later: BOI reports were due within 30 days of the effective date of registration
  • A beneficial owner is an individual who owns at least 25% of a company’s ownership interests
  • A beneficial owner is also an individual who has “substantial control” of the entity
  • Legal name
  • Date of birth
  • Complete current address
  • Image, issuing jurisdiction, and unique number of a government-issued identification document

***Please contact our office with any questions***