03/31/2024
The new FinCEN reporting applies to many businesses and any rental properties owned in LLCs.
Small corporations and LLCs are those with
20 or fewer full-time employees.
$5 million or less in domestic gross receipts reported on their prior tax return.
A physical U.S. presence.
To ensure compliance, the penalties for willfully violating the Business Ownership Information (BOI) reporting requirements include
Civil penalties of up to $591 for each day a violation is not remedied.
A criminal fine of up to $10,000.
Possible imprisonment of up to two years.
There’s no limit on the number of people who can be subject to these penalties. Both senior managers and corporate entities can be held liable for willful violations of the BOI filing rules, including
Anyone who willfully files a false or fraudulent BOI report on a company’s behalf.
Anyone who willfully provides false information to the filer of a BOI report.
Beneficial owners who willfully fail to file a BOI report or file a false report, including corporate officers, directors, or employees and LLC members and employees.
The new regulations are designed to enhance transparency, making it more difficult to conceal illicit activities through anonymous corporate structures. You will likely have to file with FinCEN and report any changes within 30 days.
The rules are effective for both new and existing entities in 2024:
New entities have to file within 90 days of formation.
Existing entities have to file on or before January 1, 2025 (which is closer than you think).
Ignoring the new reporting requirements is not an option.
BOI Form
The form to report beneficial ownership information to FinCEN, called a beneficial ownership report (BOIR), can be found by going to FinCEN’s secure online filing system (https://boiefiling.fincen.gov/fileboir). Please see www.fincen.gov/ for the latest information as well as a link to FinCEN’s secure online filing system.
IF you need assistance in completing the BOI Form the fee is $75.
WASHINGTON—Today, the Financial Crimes Enforcement Network (FinCEN) published its first set of guidance materials to aid the public, and in particular the small business community, in understanding upcoming beneficial ownership information (BOI) reporting requirements taking effect on January 1, 2...