Beneficial Ownership Information Reporting

BOI Reporting Temporarily Suspended

On December 3, 2024, the U.S. District Court for the Eastern District of Texas suspended the implementation of the Corporate Transparency Act’s (CTA) Beneficial Ownership Information (BOI) reporting requirements.

Note that the court’s order is a preliminary ruling and is only related to providing detailed beneficial ownership information to FinCEN by the January 1, 2025 deadline. While it temporarily pauses enforcement of the CTA on a nationwide basis, enforcement could resume if the suspension is later reversed.

The AICPA is in communication with the Financial Crimes Enforcement Network and the US Treasury for additional guidance on this injunction. We will contact clients as we receive updates and ensure they are compliant with the law. Check here frequently for updates.

Is Your Company Required to File a BOI Report with FinCEN?
Learn How to Avoid Costly Penalties

Your company may be required to file the Beneficial Ownership Information (BOI) Report with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

BOI reporting entities include:

• LLCs; single member LLCs, including rental properties held in LLC’s and sole proprietorships; or corporations, including homeowner’s associations and trusts
• With fewer than 20 employees, and
• Less than $5 million in gross annual revenue.

Beneficial owners are those who:

• Are owners/shareholders/partners who own at least 25% ownership interest of a reporting entity and/or
• Exercise significant responsibility to control, manage, or direct your company, such as a CEO, CFO, or COO.

Reporting Deadlines

• A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report.
• A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report.
• Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.

Beware of the Penalties

As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. This amount is adjusted annually for inflation and as of April 18, 2024 this amount is $591.

A person who willfully violates the BOI reporting requirements may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully:

• failing to file a beneficial ownership information report,
• filing false beneficial ownership information, or
• failing to correct or update previously reported beneficial ownership information.

Note: You may be receiving requests from your payroll provider or other third parties to file the BOI on your behalf. SKP does not recommend using either as the penalty for incorrect or incomplete BOI filings is $500 per day up to $10,000.

Don’t Be Late or Procrastinate

To avoid filing your BOI late or suffering from steep penalties, you need to start the filing process! Take the first step and click the button below.