BOI Reporting Regulations: Coming January 2024
April 13, 2023
The Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury (the Treasury), announced that Beneficial Ownership Information (BOI) Reporting Regulations are effective January 1, 2024. To help prepare companies and their owners, FinCEN announced a new webpage, and posted Frequently Asked Questions, a summary of reporting dates and two brief introductory videos.
The Corporate Transparency Act (CTA) establishes uniform beneficial ownership information reporting requirements for certain types of corporations, limited liability companies and other similar entities created in or registered to do business in the U.S. The CTA authorizes FinCEN to collect that information and disclose it to authorized government authorities and financial institutions, subject to effective safeguards and controls. The CTA and its implementing regulations are to provide essential information to law enforcement, national security agencies and others to help prevent criminals, terrorists and other bad actors from hiding illicit money or other property in the U.S.
Existing entities required to report BOI will have from January 1, 2024, until December 31, 2024, to file their first report with FinCEN. New entities created or registered to do business in the U.S. on or after January 1, 2024, will have 30 days to file their first report. See FAQs that cover how to register:
- FAQ 14 confirms that companies will report BOI directly to FinCEN electronically through a secure filing system available via FinCEN’s website. The system is currently under development.
- FAQ 6 states that there will not be a fee for submitting BOI to FinCEN.
To learn more about BOI reporting, reach out to your Cherry Bekaert tax advisor today.
Additional Resources:
Beneficial Ownership Information Reporting Final Rule Explained
Final Regulations Issued for Beneficial Ownership Information Reporting
Corporate Transparency Act: Overview of Proposed Rules to Implement BOI Reporting
Beneficial Ownership Information Reporting for Closely Held Businesses
New Beneficial Owner Reporting Requirements Aim to Limit Illicit Activities