The deadline for Beneficial Ownership Information (BOI) Reporting under the Corporate Transparency Act (CTA) is fast approaching, with most reporting entities needing to file by January 1, 2025.
While this new reporting has had recent court challenges since its enactment, it currently remains in effect without the expectation that it will be overturned by the end of the year. Failure to report could result in civil penalties of $500 per day and a $10,000 fine, as well as criminal penalties.
Entities formed in 2024 or that had a change in their reporting may be subject to earlier deadlines:
As some reporting entities may have a more detailed organizational structure, which requires a lengthy process to document ultimate beneficial ownership, we recommend beginning the process to accumulate necessary information and documents.
While CPA firms such as RKL will not be able to report this legal information to FinCEN due to the limitations on the firms’ ability to provide legal services, your RKL advisors may be able to assist with coordinating and accumulating the necessary information or provide references for other reporting agents.
For more information on this required reporting, review this summary of the current regulations and potential exemptions as well as the Small Entity Compliance Guide published by FinCEN for further details and guidance.
