UPDATE: BOI injunction lifted as of 12/23/2024

The Fifth Circuit Court of Appeals granted a Department of Justice (DOJ) motion to lift an injunction put in place by a district court ruling Dec. 3 that the DOJ appealed. After the Fifth Circuit order, FinCEN, which enforces the Corporate Transparency Act (CTA), announced that, for reporting companies that had been required to supply BOI information by Jan. 1, their new filing deadline was Jan. 13 (The Tax Adviser, 12/23/2024). Additional information on other deadline extensions can be found at https://fincen.gov/boi

 

UPDATE: BOI Filing temporarily suspended as of 12/03/2024

The U.S. District Court for the Eastern District of Texas on Dec. 3, 2024, issued a nationwide preliminary injunction suspending (temporarily) the government's enforcement of the Corporate Transparency Act (CTA) and its Implementing Regulations.  While the ultimate outcome of the decision is unknown, the nationwide injunction means that all companies subject to the CTA's reporting requirements are now exempt from filing beneficial ownership reports until further notice. If the temporary injunction were to be overturned or otherwise limited by the U.S. Court of Appeals for the Fifth Circuit, pre-2024 Reporting Companies may still be required to file their Initial BOI Report no later than Jan. 1, 2025. The Financial Crimes Enforcement Network (FinCEN) is still accepting BOI Reports and, to date, has not issued any public statements about the district court opinion.

 

What is Beneficial Owner Information Reporting (BOI)?

Beneficial Owner Information (BOI) Reporting refers to the mandatory reporting of information regarding individuals referred to as beneficial owners of a company or entity. These individuals hold significant control over a company, even if they are not listed as the official owners.

Who is Considered a Beneficial Owner?

A beneficial owner is typically someone who:

 

 

• Exercises substantial control over an entity, whether directly or indirectly.

 

 

• Owns 25% or more of the entity's capital or voting rights.

 

 

• Benefits from the assets of the entity.

 

 

 

Why is BOI Reporting Important?

BOI reporting is critical for enhancing transparency in business operations. It helps in:

 

 

• Reducing fraud and money laundering by identifying the actual owners of a company.

 

 

• Ensuring corporate accountability.

 

 

• Facilitating regulatory compliance with laws and regulations.

 

 

 

What Information is Required for BOI Reporting?

The information you need to report generally includes:

 

 

• Full name of the beneficial owner.

 

• Date of birth.

 

 

• Address.

 

• Nationality.

 

 

Key Steps for Compliant BOI Reporting

Here are practical steps for ensuring your business complies with BOI reporting requirements:

 

 

• Identify Beneficial Owners: Begin by identifying individuals who have significant control over your entity.

 

 

• Collect Required Information: Gather all necessary information such as names, addresses, and identification details.

 

 

• Maintain Records: Keep a secure and updated record of the beneficial owners and their details.

 

 

• Update Information Regularly: Ensure that the information is updated whenever there is a change in beneficial ownership.

 

 

• Submit Reports: File the required reports with the appropriate authorities within the given deadlines.

 

 

 

IMPORTANT REMINDER: Be sure you are providing your sensitive information in a secure manner. This program has spawned a host of scams attempting to solicit this information for free or for a small price with the intention of releasing your information to unauthorized providers. Go directly to the source for your information by reviewing the OFFICIAL filing website https://boiefiling.fincen.gov/ (secure government websites use HTTPS and have the official .gov government website address) or by contacting your trusted professional advisor.