As of January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) has introduced a significant regulatory change: the Beneficial Ownership Information Reporting (BOIR). This mandate affects both domestic and foreign legal entities and comes with crucial deadlines and consequences.
Key Deadlines
- Pre-2024 Entities (LLCs, Corporations, etc.):
- Deadline: January 1, 2025
- Requirement: File BOI report if established before January 1, 2024.
- Entities Created Between January 1, 2024, and January 1, 2025:
- Deadline: Within 90 calendar days of registration or formation.
- Requirement: File BOI report.
- Entities Created or Registered On or After January 1, 2025:
- Deadline: Within 30 calendar days (subject to change) from effective creation or registration.
- Requirement: File initial BOI report.
Exemptions
- The Reporting Rule exempts twenty-three (23) specific entities outlined in FinCEN’s Small Entity Compliance Guide.
Consequences of Non-Compliance
Failure to submit the BOI report may lead to severe consequences:
- Fines: Up to $500 per day for ongoing violations.
- Criminal Consequences: Imprisonment for up to two years and/or a fine of up to $10,000.
- Responsibility: Senior officers may be held responsible for lapses.
How to File
- Utilize the BOI E-filing System for self-filing.
Need Assistance
- Contact CrestPoint Financial by emailing warren.dcunha@crestpointfinancial.com to schedule a consultation regarding your BOI filings.
BOI Fraud Alert
- Fraudulent Communications: Individuals and entities have received deceptive emails or letters appearing to be from FinCEN.
- Alert: FinCEN emphasizes that any communication titled “Important Compliance Notice” requesting URL clicks or QR code scans is fraudulent.
For additional details and filing instructions, visit the FinCEN Website.
Stay informed, stay compliant.