Beneficial Ownership Information (BOI) Reporting Requirements: What You Need to Know
Dear Client,
I’m writing to inform you about important updates regarding Beneficial Ownership Information (BOI) reporting requirements that affect your business.
Deadline Extension: The Financial Crimes Enforcement Network (FinCEN) has extended the BOI reporting deadline to January 13, 2025, for most businesses. This extension came after recent legal developments in federal courts.
Legal Background: A federal court in Texas initially blocked the BOI reporting requirements on December 3, 2024. However, the Fifth Circuit Court of Appeals has now lifted this suspension, reinstating the reporting requirements. In response to the Court decision of, on Dec. 23 While legal challenges continue, the court has indicated the law is likely constitutional, and businesses must comply with the reporting requirements.
Updated Deadlines:
· Companies existing before January 1, 2024: File by January 13, 2025
· Companies created September 4 – December 23, 2024: File by January 13, 2025
· Companies created after January 1, 2025: File within 30 days of registration
· Companies qualifying for disaster relief may have different deadlines
Basic Requirements:
Under the Corporate Transparency Act, your company must report:
1. Company Information: Legal name, address, jurisdiction of formation, and tax identification number
2. Beneficial Owner Information: For each beneficial owner (individuals who own 25% or more of the company or exercise substantial control):
· Full legal name
· Date of birth
· Current residential address
· Unique identification number (such as passport or driver’s license)
3. Company Applicant Information: For companies formed after January 1, 2024, details about individuals who filed formation documents
We recommend starting this process early to ensure compliance with the new deadline. Penalties for non-compliance can include civil penalties of up to $500 per day and potential criminal penalties.
Contact our office for assistance in styling compliant.
Best regards,
Diane Shenk, EA
Shenk Tax & Accounting, Inc.
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