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6-Month Deadline to Comply With the Federal Beneficial Ownership Information Reporting

New Federal Reporting Requirement for Beneficial Ownership Information (BOI)

 

The Corporate Transparency Act (CTA) mandates that many domestic and foreign entities report their beneficial ownership information (BOI) to FinCEN. This act aims to enhance transparency and combat illegal activities.


FinCEN Reporting Requirements Article By Ashley Strauss-Martin, New Mexico Association of REALTORS® General Counsel

 

Who Needs to Report?

All entities that file formation or registration documents with a U.S. state or Indian tribe must report, unless exempt (e.g., large operating entities and publicly traded companies).

 

The Corporate Transparency Act (CTA) requires many domestic and foreign entities to report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), enhancing transparency and combating illegal activities. Entities must report unless exempt, such as large operating entities and publicly traded companies.

 

Deadlines vary and there are criminal penalties for noncompliance (Civil Penalties: Up to $591 per day). Required information includes the company's name, address, formation state, TIN, and details of beneficial owners.

 

 

Existing Entities (created/registered before Jan. 1, 2024): Must file by Jan. 1, 2025.

 

If you have any questions, you need to reach out to your CPA or an Attorney.


Header from the FinCen Website
Header from the FinCen Website

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