The clock is ticking for businesses to comply with the Beneficial Ownership Information (BOI) reporting requirements established by FINCEN. The deadline is set for January 1st, 2025, and while some businesses, like accountants, are exempt, many others will need to take action to meet the new federal regulations. Here’s what you need to know.
What is Beneficial Ownership Information (BOI)?
The BOI reporting rule is part of an effort by FINCEN to increase transparency in business ownership and prevent illicit activities like money laundering and tax evasion. Businesses will be required to report information about individuals who directly or indirectly own or control 25% or more of the company.
Who Needs to Report?
BOI reporting applies to most domestic and foreign entities registered to do business in the United States. This includes corporations, LLCs, and other similar entities. However, there are some exceptions. For instance, certain businesses like accountants, banks, and publicly traded companies are exempt from these reporting requirements.
What Information Must Be Reported?
Companies subject to the BOI rule will need to report the following details about each beneficial owner:
- Full legal name
- Date of birth
- Residential address
- Social Security number (or other identifying number)
Next Steps for Businesses
To stay compliant with the BOI reporting requirement, businesses should:
- Determine if you qualify: Review the list of exempt entities and decide whether your business needs to file.
- Gather and submit information: Ensure you have all the necessary details on your beneficial owners and submit them accurately before the January 1, 2025 deadline.
- Stay updated: Keep an eye on updates from FINCEN to ensure you remain compliant. You can find more details on the IRS website [here](insert IRS BOI link).
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