By September 2022, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) finalized the beneficial ownership information (BOI) reporting rule implementing Section 6403 of the Corporate Transparency Act (CTA). In general, the BOI rule starts taking effect on January 1, 2024, and covers companies formed after that date are required to submit required reports within 30 days.
The FinCEN, however, granted a partial respite on November 30, 2023, after finalizing a rule that extended the 30 day deadline for submitting required reports to 90 days. In accordance with this extension, which is only applicable to companies created after January 1, 2024, a covered company created after that date must submit a BOI report within 90 days of being created or registered.
A BOI report must still be submitted by January 1, 2025 if the company is non-exempt as of December 31, 2023. If the company is formed after January 1, 2025, a BOI report must be filed within 30 days of the company’s formation or registration.
On January 1, 2025, however, the filing deadline reverts to 30 days, meaning late-formed companies can request the extension of 90 days only through December, then must file no later than January 31.
Companies should continue to think about how the BOI rule might apply to them and what actions they need to take to comply with its requirements, even with the extension of the reporting deadline to 2024.
FinCEN may impose civil or criminal penalties of up to $10,000 and up to two years in prison on anyone who provides, or attempts to provide, false or fraudulent BOI data.FinCEN cannot request updated or complete BOI data from a reporting company if an individual “causes the failure,” including omitting required information to complete or submit the BOI report.
