Small Business Taxes & Management

Special Report

Update on Beneficial Ownership Information Reporting

A short time ago several court cases put the beneficial ownership information (BOI) report requirements required by the Corporate Transparency Act (CTA) and neforced by the Financial Crimes Enforcement Network (FinCEB) in limbo. The Firth Circuit Court of Appeals granted the Department of Justice motion to lift an injunction that had been in place. Entities required to file are now required to do so.

The good news is that if you haven't filed, you may have extra time. FinCEN has announced that entities facing the January 1, 2025 date now generally have until January 13, 2025. Here are the rules.

Reporting entities created or registered before January 1, 2024 have until January 13, 2025 to file an initial report. The same deadline applies to reporting entities created or registered in the U.S. on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024.
Some entities in qualified disaster areas may have a deadline beyond January 13.
Entities created or registered in the U.S. on or after January 1, 2025 have 30 days to file an initial BOI report after they receive notice their registration is effective.
Entities created on or after September 4, 2024 required to report that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025.
Entities required to report and created in the U.S. on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from original filing date to file their first report.

Entities should also keep in mind that they must report to FinCEN any change in ownership, name, or other information that was on the initial or prior amended report.

There are a very few exceptions that apply to small entities. Sole proprietorships need not report, but an LLC that is a disregarded entity must report.

For more information go to Beneficial Ownership Information-Frequently Asked Questions. To file a report go to www.fincen.gov/boi.

Copyright 2024 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536

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--Last Update 12/27/24