What is a BOI report?
Who needs to file one?
An entity is required to report beneficial ownership information if it is a “reporting company” and does not qualify for an exemption. Chapter 1 of FinCEN’s Small Entity Compliance Guide may assist in determining whether an entity qualifies for an exemption.
Beneficial ownership information is information about an entity, its beneficial owners, and, in certain cases, its company applicants. The person submitting beneficial ownership information to FinCEN must certify that the information is true, correct, and compete.
When do I need to file the BOI report?
• Reports will be accepted starting on January 1, 2024.
• Reporting companies created or registered to do business before January 1, 2024,will have additional time — until January 1, 2025 — to file their initial BOI reports.
• Reporting companies created or registered on or after January 1, 2024, and before January1, 2025, have 90 calendar days after receiving actual or public notice that their company's creation or registration is effective to file their initial BOI reports. Specifically, this90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.
• Reporting companies created or registered on or after January 1, 2025, will have 30calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports.
Where can I file a BOI return
Starting on January 1, 2024, BOI reports must be filed electronically using FinCEN’s secure filing system. FinCEN will store BOI reports in a centralized database and only share this information with authorized users for purposes specified by law. The database will use rigorous information security methods and controls typically used in the Federal government to protection-classified yet sensitive information systems at the highest security level.
failure to report beneficial ownership information to FinCEN or failure to update or correct the information within the required timeframe?
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. However, this civil penalty amount is adjusted annually for inflation. As of the time of publication of this FAQ, 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, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
Contact Us
It can be quite challenging to stay updated with all the legal changes and requirements necessary to ensure your business runs smoothly and remains penalty-free.
At Tax Tree, we ensure that your compliance is kept up to date to avoid any trouble or penalties.
In this service, you will get.
BOI report filed through finCEN.
Backups for your BOI report confirmation.
Competent work on time.
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