BOI Reporting Due Dates Will Not Be Extended, FinCEN States
With the deadline quickly approaching, nearly 30 million businesses will need to submit beneficial ownership information (BOI) reports from September to December 31, 2024. To help business owners across the nation understand the filing requirement, the US Treasury Department and the Financial Crimes Enforcement Network (FinCEN) are increasing their educational initiatives regarding BOI reporting requirements.
Alarmingly, less than 10 percent of the 32.6 million businesses required to file BOI reports have completed their submissions to date. As of June, FinCEN has actively engaged with 90,000 stakeholders through government entities, industry associations, service providers, and more. These outreach efforts are focused on informing businesses about the impending requirements and associated deadlines. Even with the ongoing concerns regarding the effectiveness of these outreach initiatives, FinCEN will not extend the BOI reporting deadline beyond December 31, 2024.
Understanding the Corporate Transparency Act
As a part of the National Defense Authorization Act, the Corporate Transparency Act (CTA) is a federal law enacted in 2021. Its primary objective is to prevent money laundering, terrorism financing, and other illicit financial activities by promoting transparency within corporate structures.
To accomplish its goals, beneficial owners are revealed to make it more challenging to hide illegal activities behind anonymous shell companies. For legitimate businesses, beneficial ownership reporting promotes a more transparent and trustworthy business climate. It helps prevent unfair competition from entities engaging in illicit activities, creating a more level playing field for all businesses.
Timeframes for Initial Reporting
The reporting requirement came into effect on January 1, 2024. FinCEN began accepting beneficial ownership information reports on that date. Any company created or registered to do business in the US that meets the definition of a reporting company and is not exempt from that definition will be required to file before January 1, 2025.
Any company created or registered to do business in the US in 2024 will have 90 calendar days from the date it receives actual or public notice that the reporting company’s creation or registration is effective, while companies created or registered after 2024 will have 30 days.
It’s crucial for business owners to understand the serious implications of failing to file their organization’s BOI report. Deliberate violations can result in:
- Daily fines of $591, with penalties reaching up to $11,820
- Possibility of imprisonment for up to two years.
No Extension for BOI Reporting: Time to File Is Running Out
With the BOI filing deadline fast approaching, a flood of last-minute submissions is inevitable. Many organizations will attempt to file close to the due date, putting a strain on government systems. This will result in technical glitches and data losses, which can easily cause you to miss the reporting deadline. As such, you should act now to mitigate this risk and avoid hefty CTA penalties.
Additionally, compiling the required information for BOI filings is a time-consuming process. FinCEN estimates that, for the four million reports submitted, organizations took two to four months to gather the necessary data and complete the submission process. Considering how quickly the deadline is approaching, many reporting entities are already behind schedule.
Given that BOI reporting is a legal obligation, failure to submit filings will result in severe penalties, with fines starting from $591 per day plus inflation. By acting promptly, you will avoid these steep penalties and ensure your organization remains in good standing.
Partnering with an expert like Harbor Compliance ensures that your BOI reports are accurate and submitted on time.
Don’t Miss the BOI Filing Deadline
Our centralized platform streamlines the secure collection of your BOI data, and our experts will file your BOI reports within 48 hours of receiving the information.
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Partnering With Harbor Compliance
According to FinCEN’s estimates, submitting a BOI report can take up to three hours per entity. It’s a time-consuming task, especially if you run a multi-entity organization. If you outsource reporting to us, you can avoid such waste and have peace of mind knowing that a team of experts handles your report.
More importantly, filing the initial report is only the first step of the reporting process. All BOI must be kept current and accurate, so you must continually be on the lookout for changes in your company’s ownership structure and beneficial owners’ information. To make updates effortless, with Harbor Compliance’s BOI Reporting Service:
- We send you automated periodic reminders to check if your BOI needs to be updated, so you don’t need to worry about the threat of unreported changes.
- When any relevant information is changed, we submit an updated BOI on your behalf, sparing you the hassle of doing so independently.
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