As of January 1, 2024 owners of U.S. based businesses are required to comply with the new rules established by the “Corporate Transparency Act” (CTA).

The CTA is a federal law that requires business entities to report details about ownership to the Financial Crimes Enforcement Network also known as FinCEN.  The CTA was enacted in 2021 to help prevent and combat money laundering, terrorist financing, tax fraud and corruption.

Not all businesses are required to file the Beneficial Ownership Information Report (BOIR).  The businesses that meet the following criteria are exempt from filing the BOIR:

Non Profit Organiztions, Publicly Traded Companies, Businesses that employ more than 20 people and have gross receipts over $5 million.

A Beneficial Ownership Information Report (BOIR) must be filed before January 1, 2025 to avoid significant penalties of up to $500 per day.  The CTA may also impose both civil and criminal penalties for violations of the reporting requirements.

If you have questions about the Beneficial Ownership Information Report give us a call at 1-800-IRS-HELP.