The Corporate Transparency Act sweeps most small businesses into bucket of new reporting requirements known as Beneficial Ownership Reporting (BOI). Effective January 1, 2024, most legal entities (LLC, Inc., S-Corps, LLP, etc.) registered to do business in the United States must disclose and report information relating to their owners, officers and controlling persons to the Financial Crimes Enforcement Network (FinCEN).
Who is required to report under the CTA's BOI reporting requirement?
All domestic and foreign entities that have filed formation or registration documents with a U.S. state (or Indian tribe), unless they meet one of 23 enumerated exceptions
When must companies file?
New entities (created/registered Jan. 1, 2024 - Dec. 31, 2024) must file within 90 days
New entities (created/registered Jan. 1, 2025 - forward) must file within 30 days
Existing entities (created/registered before Jan. 1, 2024) - must file by Jan. 1, 2025
Reporting companies that have changes to previously reported information or discover inaccuracies in previously filed reports - must file within 30 days.
What information do companies need to report?
Each company must report the information below. Click or tap here for an example of the form.
Full legal name of the reporting company and any trade or DBA names
Business address
State or Tribal jurisdiction of formation or registration
IRSTIN
In addition, each reporting company must report the following details on its beneficial owners and, for newly created entities, its company applicant(s):
Name
Birthdate
Address
Unique identifying number and issuing jurisdiction from an acceptable identification document (i.e., drivers license) and image of such document
How can companies file their BOI Report?
Reporting companies may complete BOIRs electronically by accessing the BOI E-Filing portal at https://boiefiling.fincen.gov.
The portal permits the following filing methods to file:
Upload finalized PDF version of BOIR and submit online.
Fill out Web-based version of BOIR and submit online.
In each case, the person who submits a BOIR will need to provide their name and email address to FinCEN. BOIRs cannot be mailed or faxed to FinCEN.
What are the taxpayer penalties for noncompliance with the statute?
Civil penalties are up to $500 per day that a violation continues.
Criminal penalties include a $10,000 fine and/or up to two years of imprisonment.
FinCEN is the same government organization that enforces foreign bank account reporting & investments, and is an arm of the Department of Treasury separate from the Internal Revenue Service. As you can see, they don't mess around when it comes to penalties for non-compliance.
The Idaho State Board of accountancy is waiting on clarification from the Idaho State Bar as to whether filing BOI reports on behalf of clients is considered the practice of law, or if it is a service that CPA firms can provide. Until we receive additional guidance from the Idaho State Board of Accountancy and/or the bar, we will be unable to provide BOI reporting services for our clients.