Insights

Deadline for Beneficial Ownership Information (BOI) Approaching

As the deadlines for Beneficial Ownership Information (BOI) reports to be filed with the Financial Crimes Enforcement Network (FinCEN) approach, it is crucial to remain vigilant about potential reporting obligations and to watch out for scams that continue to emerge in the space. Please note that despite ongoing legal challenges, the Corporate Transparency Act (CTA) is still the law, and the requirements, deadlines, and penalties still apply.

Reporting Deadlines

The BOI reporting requirements enacted in the CTA apply to corporations, LLCs, or any similar entities created by the filing of a document with a secretary of state or any similar office. Those businesses are required to disclose information about their beneficial owners directly to FinCEN, and failure to file accurate and timely reports could result in significant penalties.

• Existing entities formed before January 1, 2024, have until January 1, 2025, to submit their BOI reports.
• New entities formed or registered after January 1, 2024, must report BOI within 90 days of formation.

Key Reporting Details

• There are 23 types of organization that are exempt from the reporting requirements.
• The reports require information (name, date of birth, address, ID number and image) on “beneficial owners,” which means anyone who directly or indirectly, exercises “substantial control” over a reporting company or owns or controls at least 25% of the ownership interests of a reporting company.
• New entities formed or registered after January 1, 2024, must also report their “company applicants,” who were involved in the creation and registration of the company.

Beware of Scams and Protect Your Business Information

With the rollout of these new reporting requirements, fraudulent schemes are targeting businesses with misleading or fake correspondence. Below are some common scams we are seeing:

• Correspondence Requesting Payment: There is no fee to file BOI directly with FinCEN. Be aware that FinCEN does not send correspondence requesting payment for BOI filing. Do not send any money in response to these requests, as they are not legitimate.
• Suspicious Links or QR Codes: Beware of emails or letters that ask you to click on suspicious URLs or scan QR codes to file your BOI. Do not click on any links, attachments, or scan any QR codes from unsolicited or suspicious correspondence.
• Fraudulent Forms: Scammers may send out forms that reference “Form 4022” or “Form 5102,” which are not legitimate forms. Do not submit your BOI information on such forms.
• Fake Government Entities: Correspondence mentioning the “US Business Regulations Dept.” is fraudulent, as no such government entity exists. If you receive documents or letters from such entities, disregard them.

How to File Safely

BOI reports are filed for free via the official FinCEN BOI filing portal. Always ensure you are accessing the site directly through FinCEN’s website and never through third-party links from unsolicited emails or mailings. ,/p>

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The information presented here should not be construed as legal, tax, accounting, or valuation advice. No one should act on such information without appropriate professional advice and after a thorough examination of the particular situation.