Despite Court Case, BOI Reporting Still Required for Businesses
Audio version available here:
Length: approx. 1 min. 30 sec.
As you have likely heard, many businesses are facing a new hurdle for government compliance starting 2024. Under the Corporate Transparency Act, beneficial ownership information (BOI) is now required of nearly all businesses registered in the United States. This information is submitted directly to the Financial Crimes Enforcement Network (FinCEN).
However, there have been efforts to repeal this requirement, and most recently, the Corporate Transparency Act was found unconstitutional. Despite this decision, penalties will still be enforced if businesses do not submit their report before the deadline.
How come the Corporate Transparency Act being ruled unconstitutional does not mean that the BOI reporting requirement is reversed? It technically does, but only for the plaintiffs involved in The National Small Business Association v. Yellen case. All other businesses must continue to report or face penalties.
In order to avoid them, business owners should submit their BOI report by one of two deadlines. Businesses that were registered before January 1st, 2024 have a deadline of January 1st, 2025. All businesses registered in 2024 only have 90 days to submit their BOI report to FinCEN. Failing to abide by these deadlines will result in a penalty of $500 per day. That’s right, you could incur thousands of dollars in penalties in a matter of days.
That is why it is vital to submit this information before the deadline, regardless of if the Corporate Transparency Act has been ruled unconstitutional. If you are unsure of how to do so, reach out to the XQ CPA team for assistance. We are here to help you, so get in contact today by phone or by booking an appointment online.
Phone: 832-295-3353
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