Corporate Transparency Act (CTA). The CTA requires certain types of U.S. and foreign entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
The CTA requires any entity that has been formed pursuant to registration with a state, tribal or foreign agency that is not otherwise exempt (a “Reporting Company”) to report to the US Treasury Financial Crimes Enforcement Network (“FinCEN”) certain information regarding its ultimate “Beneficial Owners” (which include persons who directly or indirectly control or own at least 25% of the entity as well as persons who exercise substantial control over the entity), through a Beneficial Ownership Information Report (a “BOIR ”). The failure to file or providing false or fraudulent information in a BOIR may result in substantial civil or criminal penalties.
Companies formed prior to January 1, 2024, must complete and file a BOIR by January 1, 2025. I am sharing this with you because you may be required to file a BOIR by this deadline.
It is our firm’s policy to not handle these types of filings. However, we have prepared a series of resources to help you understand:
The available exemptions from the requirement to file a BOIR;
How to determine what persons would be Beneficial Owners and the information needed to be obtained from them in order to file the BOIR; and
Filing Options: The BOIR can be filed at BOI E-FILING (fincen.gov) at no cost.
I've included a Quick Reference Guide that you can download below, that I downloaded from the BOI E-Filing Website.
You can also reach out to another service provider for assistance with the filing, such as https://www.tax1099.com/
Please let me know if you have any questions.
-Susie Newman
President, SJ Rose Bookkeeping
