Navigating Complexities Beyond the Spreadsheet
When are reports due ? Existing reporting companies ( formed before Jan . 1 , 2024 ) must report the company and its beneficial owner ( s ) information before Jan . 1 , 2025 . New reporting companies formed in 2024 must file their initial reports within 90 calendar days from the date of receiving actual or public notice of their creation or registration becoming effective . Reporting companies created or registered on or after Jan . 1 , 2025 , will have 30 calendar days to file their initial BOI reports with FinCEN .
Note , BOI reporting is not an annual requirement . A report only needs to be submitted once , unless the filer needs to update or correct information , for which 30 days is granted to submit the amended report .
What are the penalties if I fail to comply ? Violations of the CTA , including failure to report BOI or the reporting of false or fraudulent information , may lead to the following penalties :
Alabama Ruling
A federal district court in Alabama recently ruled the CTA unconstitutional in a suit brought by the National Small Business Association ( NSBA ) against the Treasury , leaving businesses questioning whether to proceed with their own filings . FinCEN has indicated the ruling only applies to the plaintiffs in the action , which includes the NSBA and its members as of March 1 , 2024 . Businesses should continue to work with their attorneys and / or accountants to prepare for their filings . The AICPA also recently issued a statement indicating businesses should continue to file BOI reports .
Here to Help
Doeren Mayhew ’ s business advisors are here to assist with your BOI filing needs , including helping you understand this new requirement , identifying whether you need to file , assisting with obtaining an Employer Identification Number needed to file as well as submitting the BOI report on your behalf
• Civil penalties can be up to $ 500 for each day the violation continues . The penalty is indexed for inflation and is currently $ 590 .
• Criminal penalties may include fines of up to $ 10,000 and / or imprisonment for up to two years .
Dedicated BOI Advisor
JEFF MCCANN , CPA
PRINCIPAL / SHAREHOLDER mccann @ doeren . com
Jeff brings nearly 25 years to his role leading the firm ’ s international tax and advisory group , guiding multinational clientele through business and tax complexities to reach their financial goals .
Navigating Complexities Beyond the Spreadsheet
Our team of strategic wayfinders aren ’ t here to just meet your tax or audit needs . We stay abreast of new regulations and take a deep dive into how this applies to our clients , so that we ’ re uniquely positioned to confidently navigate them through whichever business terrain they ’ re in . Explore our menu of advisory services by scanning our QR code .
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