FinCEN’s Reporting Deadline for Existing Companies Fast Approaching

A new reporting requirement for Beneficial Ownership Information (BOI) went into effect on Jan. 1, 2024, and the deadline is approaching quickly.

Introduced as part of the Corporate Transparency Act and enforced by the Financial Crimes Enforcement Network (FinCEN), this requirement is imposed on an entity-by-entity basis. While some entities are exempt from the reporting requirement, many entities will be required to report. Please review KSM’s previous alert for additional information.

Note: Many aspects of this new reporting requirement are legal in nature and outside the scope of traditional tax and accounting services. Thus, consultation with legal counsel is recommended for additional assistance.

When Do Existing Reporting Companies and Recently Created Reporting Companies Need To File?

Legal entities that are required to file a BOI report are considered “Reporting Companies.” Filing deadlines for Reporting Companies are as follows.*

• Reporting Companies created or registered to do business prior to Jan. 1, 2024: Jan. 1, 2025**
• Reporting Companies created or registered to do business in 2024: Within 90 days of the effective date of their creation or registration***
• Reporting Companies created on or after Jan. 1, 2025: Within 30 days of the effective date of their creation or registration

*In all cases, if there are any changes to a Reporting Company’s BOI information after the initial report is filed, the Reporting Company has only 30 days to file an updated report.

**Reporting Companies that existed prior to 2024 have until the end of the year to file their initial report.

***All Reporting Companies that have been created in 2024 must monitor their specific due date. Newly created Reporting Companies will each have a unique due date to the extent they were created on different days.

Penalties

It is important to address these filings quickly and within the required timeframes. Penalties for willfully violating the BOI reporting requirements include:

1. Civil penalties of up to $591 per day that a violation is not remedied;
2. A criminal fine of up to $10,000; and/or
3. Imprisonment of up to two years.

Filing Extensions

Some due date extensions exist for certain reporting companies impacted by Hurricane Milton, Hurricane Helene, Hurricane Debby, Hurricane Beryl, and Hurricane Francine. If this applies to you, please review the relevant FinCEN notice to determine if the extension is available.

BOI Resources

For more information on the new reporting requirement, FinCEN offers detailed and helpful guidance on BOI reporting, including:

• BOI reporting homepage
• BOI FAQ
• BOI Small Entity Compliance Guide