Effective January 1, 2024 many businesses in the United States must comply and report information about their beneficial owners – the individuals who ultimately own or control the company – to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
Background
In 2021, Congress enacted the Corporate Transparency Tax Act (CTA), which establishes uniform Beneficial Ownership Information (BOI) reporting requirements for certain types of corporations, limited liability companies, and other similar entities created in or registered to do business in the United States.
The goal of the CTA is to gather additional information regarding the ownership of entities engaging or operating in the U.S. market to combat illicit activities such as money laundering and tax evasion.
Filing is simple, secure, and free of charge. BOI reporting is not an annual requirement. Unless a company needs to update or correct information, a report only needs to be submitted once. Visit the Financial Crimes Enforcement Network (FinCEN) website for more information and to file.
Below will you find FAQs and a step-by-step tutorial of the reporting.
“Under the Corporate Transparency Act, we’re now tasked with reporting beneficial ownership information to FinCEN, which is a move towards more transparency and accountability. It’s crucial to start preparing early, consult with professionals, and stay updated on any new guidelines.”
– Jennifer Lownsbury, CPA and Partner
At CDS, BOI reporting is not within the scope of our engagement of services. For help with reporting, please reach out to your attorney for assistance. For further questions, contact your CDS experts at (888) 388-1040.
