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FinCEN Update: Voluntary BOI Reporting During Injunction The Financial Crimes Enforcement Network (FinCEN) has announced that companies can voluntarily file Beneficial Ownership Information (BOI) reports despite a preliminary injunction halting the enforcement of the Corporate Transparency Act (CTA). This injunction, issued by a Texas federal court, pauses the mandatory reporting requirements and associated penalties. However, companies may still choose to submit their BOI reports voluntarily. This development is part of ongoing legal challenges questioning the constitutionality of the CTA, with several cases pending across the country.

CTA Update: Compliance Remains Optional Despite Supreme Court Ruling. As a result of the ruling, FinCEN confirmed that it will not require reporting companies to file Beneficial Ownership Information (“BOI”) reports while this second injunction remains in place. Learn more about the update in our latest alert from our Business & Finance Attorneys Aylin Daldal, Howard Davis, Gary Kan.

Do You Need To File A BOI Report? The Beneficial Ownership Information (BOI) Reporting Rule, with its steep financial (and even criminal) penalties for failing to comply, has caused fear and confusion among small business owners nationwide. Adding to the bewilderment is that some U.S. legislators are now calling for the Corporate Transparency Act (CTA), the law that mandates BOI reporting, to be repealed. So what might we expect, and what are business owners to do if they haven’t already filed their BOI report with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN)? https://lnkd.in/eErrzM2v

The clock continues to tick. Here are the upcoming deadlines for filing your Business Ownership Information (BOI) reports with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Deadlines: If your business existed as of January 1, 2024, you must file your BOI report by January 1, 2025. If you created your business in 2024, you have 90 days from the date of filing with your state’s Secretary of State to submit your BOI report. Entities Required to File: All limited liability companies (LLCs) and corporations must file. For example, if you own multiple LLCs, each requires a separate BOI report. Penalties for Non-compliance: Failure to file on time can result in significant penalties, including fines of $591 per day, a potential $10,000 criminal penalty, and up to two years in prison. If this applies to your entity take this matter seriously and comply.

The clock continues to tick. Here are the upcoming deadlines for filing your Business Ownership Information (BOI) reports with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Deadlines: If your business existed as of January 1, 2024, you must file your BOI report by January 1, 2025. If you created your business in 2024, you have 90 days from the date of filing with your state’s Secretary of State to submit your BOI report. Entities Required to File: All limited liability companies (LLCs) and corporations must file. For example, if you own multiple LLCs, each requires a separate BOI report. Penalties for Non-compliance: Failure to file on time can result in significant penalties, including fines of $591 per day, a potential $10,000 criminal penalty, and up to two years in prison. If this applies to your entity take this matter seriously and comply.

Please note: BOI reporting requirements are once again on hold as of Friday, December 27th, 2024. The Financial Crimes Enforcement Network (FinCEN) has extended Beneficial Ownership Information (BOI) reporting deadlines under the Corporate Transparency Act (CTA). This follows a recent court ruling on December 23, 2024, lifting a temporary injunction that had paused enforcement of these requirements. Learn more about the extended deadlines here: https://lnkd.in/e4uaCRzG #LMC #LMCAdvisors #beneficialownershipinformation #tax #accounting #stayinformed

What happens if failing the federal report on beneficial ownership in the USA Since January 1, 2024 most companies registered in the United States have had to report information about their beneficial owners ( “BOI”) to the Financial Crimes Enforcement Network which is a Federal agency of the U.S. Department of the Treasury.  It is worth remembering that although an asset's legal owner and beneficial owner are quite often the same person or entity, sometimes they are not. In some cases, the subject that officially holds the title to a business, property, trust, security or suchlike differs from the subject that actually controls it or receives the most benefit from their value. Therefore, to put it simply, a beneficial owner owns part or the whole of a property or other assets even if its legal title is attributed to someone else and can generally influence any decision regarding the asset and how it is managed. The deadline can vary generally depending on the registered date of when the company is set up. One of such deadlines is fixed on January 1 2025 for the companies registered before January 1, 2024 in order to file their initial BOI report. If the BOI report filing deadline is missed the consequences might be dire because both civil and criminal sanctions would be applied. As a matter of fact, for each day beyond the deadline the fine could be up to nearly $ 600. More severe consequences include up to two years of imprisonment and a fine of up to $10,000 should the BOI not be willfully applied or should false information be provided or previously reported information not be updated. Lately, I have come to the realization that many companies falling within this legislation are not fully aware of the serious implications for not duly filing this federal report. For those who wish to have further insights into the matter we are available to provide the information required.

Many small businesses must report Beneficial Ownership Information (BOI) to FinCEN under the Corporate Transparency Act (CTA). This regulation was designed to help law enforcement combat money laundering and financial fraud by creating a national database of company ownership. Learn who needs to comply and how to prepare in this article. Article Link: https://lnkd.in/eZ-JTAG2 #LMC #LMCAdvisors #beneficialownershipinformation #tax #accounting #stayinformed

File your BOI reports by Jan 1, 2025, to avoid hefty penalties. The reinstated Corporate Transparency Act requires nonexempt businesses to disclose beneficial ownership info. Act now to stay compliant!

The Corporate Transparency Act requires most small businesses to file a beneficial ownership report with the Financial Crimes and Enforcement Network this year. We've compiled a quick guide for small businesses on beneficial ownership reporting requirements and the act's exemptions so you can stay compliant. Learn more: https://ow.ly/lROC50Sx3Lh #beneficialownership #cta #smallbusiness #compliance