What is the Corporate Transparency Act (CTA)?
As of January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) is now accepting U.S. Beneficial Ownership Information (BOIR) through the FinCEN’s secure website, as a result of the recently passed Corporate Transparency Act. The CTA “requires otherwise unregulated companies to report information about “beneficial owners”—those who own at least 25% of or exercise substantial control over the reporting company—to the U.S. Department of the Treasury’s FinCEN. Failure to comply could result in fines of up to $10,000 and imprisonment for up to two years…”
Information about Filing
Filing is free of charge and is not an annual requirement. Unless the filer needs to update or correct information, BOIR only needs to be submitted once. This information includes:
- Filing Information
- Reporting Company
- Company Applicant(s)
- Beneficial Owner(s)
*Note: The above fields will require information such as business and personal addresses, date of birth, FinCEN ID, an image of your current US passport / driver’s license, etc. You will want to have this prepared before filing in order to maximize your time.
Deadlines to File
Companies that are required to comply must file by the following deadlines:
- 1/1/25 – Reporting companies created or registered to do business in the United States before January 1, 2024 must file by January 1, 2025.
- 90 calendars days in 2024 – Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.
Two Methods for Filing BOIR
- File PDF BOIR
- Adobe Reader 8 or higher is required
- Ability to reuse PDF BOIR when filing updates/corrections as well as to download BOIR transcript upon submission
- File Online BOIR
- Prepare new Online BOIR when filing updates /corrections. *You will need to resubmit the entire report for any new updates/ corrections.
- Ability to Download BOIR transcript upon submission
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Blog by Kim Storen, EA – Tax Services Manager