Starting January 1, 2024, entities are required to comply with the Corporate Transparency Act (CTA) by disclosing Beneficial Ownership Information (BOI) from individuals who own or control the entity (ownership of 25% or more or substantial control, ie officers). The CTA was enacted into law as part of the National Defense Act, and the intent of the BOI reporting requirement is to help US law enforcement fight money laundering, the financing of terrorism and other illicit activities. The CTA is not part of the tax code but a part of the Bank Secrecy Act. Under the CTA, BOI reports will not be filed with the IRS but with the Financial Crimes Enforcement Network (FinCEN), an agency within the Department of Treasury.  

 

The CTA applies to both domestic and foreign reporting companies. Domestic companies required to report include corporation, limited liability companies (LLCs) or any similar entity created by the filing of a document with a secretary of state or any similar office under the law of a state or Indian tribe. Domestic entities not created by filing a document with the secretary of state or similar office are not required to report. Additionally, business entities organized under foreign laws but registered to do business in a US state or tribal jurisdiction may also be considered reporting companies. 

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Important Filing Deadlines: 

• Entities created before January 1, 2024 have until January 1, 2025 to file. 

• Entities created after January 1, 2024 have 90 days to file. 

• Entities created after January 1, 2025 have 30 days to file. 

• Changes to ownership information already reported must be updated within 30 days. 
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Services related to the CTA may be deemed practices of law. Thus, Massing & Elliott CPAS PLLC is unable to offer BOI reporting services. We can provide the following websites that have helpful information, guidance and filing links.  

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• https://www.fincen.gov/boi-faqs 

• https://www.youtube.com/watch?v=GydCvfbKxPw

• https://www.capitolservices.com/cta/ 

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To file yourself for free using the link below:

• https://www.fincen.gov/boi 

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PDF Reference and Instructions

• BOIR_E-File_PDF_Quick_Reference_Guide.pdf

• BOIR_E-File_Online_Step-by-Step_Instructions.pdf

 

Penalties for willfully not complying with the BOI reporting requirement can result in criminal and civil penalties of $500 per day and up to $10,000 with up to two years of jail time. 

 

If you need further assistance or would like BOI filed for you, we recommend contacting your attorney or Micah John Tarry of Tarry & Hene PLLC by email at mjt@tarryhene.com as we are regrettably unable to provide any further information, advice or guidance. 

 

MASSING & ELLIOTT CPAS PLLC