New BOI Requirement For Small Businesses!
Audio version available here:
Length: approx. 1 min. 20 sec.
Critical news for small business owners! Back in 2021, the US Congress passed the Corporate Transparency Act to make it more difficult for “bad actors to hide or benefit from their ill-gotten gains” through “opaque corporate structures”. One essential step the US Treasury Department is taking to implement this act is to require business owners to submit Beneficial Ownership Information (BOI).
The BOI requires small business owners to provide information “about the individuals who directly or indirectly own or control a company”. If you are a business owner that files LLCs, you will need to report the BOI to the Financial Crimes Enforcement Network (FinCEN) starting January 1st, 2024 until the January 1st, 2025 deadline. However, if your LLC was filed after January 1st, 2024, then you will have a 30 day timeline once you receive a “notice of [your] company’s creation or registration".
There are serious penalties for business owners who do not file their BOI. The failure to file penalty is a fine of $500 per day, maxing out at $10,000 and possible jail time. FinCEN is hoping that this notice will help law enforcement “combat money laundering, terrorist financing, tax fraud, and other illicit activity”.
Guidance from FinCEN on how to submit the BOI is not yet available. Because of this, it is vital to stay informed on the latest updates. Do so by following XQ CPA, where we share with you the latest tax news. Also consider reaching out to our tax professionals for expert guidance. We are here to help you.
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Source: https://www.fincen.gov/boi-faqs
