Congress passed the Corporate Transparency Act in 2021. The act's purpose is to limit the ability of individuals or organizations to use shell companies to hide assets, especially those acquired in illegal or questionable ways. 

Beneficial ownership information (BOI) is the identifying information for any individuals who either directly or indirectly own or control a company. BOI will not be publicly available but will be accessible to certain government agencies via a database.

Who Manages the Database

The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) is responsible for implementing BOI. This includes setting policies and rules, providing outreach and training information, and managing the database. 

When Do Companies Have to Report

Companies could begin reporting BOI on Jan. 1, 2024. Individuals and companies can file this information via the FinCEN website. 

• The deadline for when to file depends on when a company was created or registered to do business. 
•       Companies that were either created or registered to do business before Jan. 1, 2024, must file by Jan. 1, 2025. 
•         Companies that were either created or registered to do business during 2024 will have 90 days to file upon receiving notice their registration was effective.
•         Companies that were either created or registered to do business on or after Jan. 1, 2025, will have 30 days to file upon receiving notice their registration was effective.

What are the fees for filing a BOI Report?

There are currently no fees required to file a report.

Who Can File a BOI Report?

A reporting company can authorize anyone to file the report. This can be an owner, employee, or third party. The person who files the report must provide contact information to FinCEN.

Do foreign-based companies have to file a BOI Report?

Any company registered to do business in the United States must file a report. Current policy does exempt 23 types of companies from the reporting requirements.

New laws and policies can be difficult to navigate. If you have any concerns about BOI Reports and what these new laws mean for you or your company, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.