Deadline Extended to January 13, 2024
On December 3, 2024, the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction on implementation and enforcement of the BOI Reporting requirement. On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated the enforcement of the Corporate Transparency Act (CTA), requiring businesses to report beneficial ownership information (BOI) to FinCEN within the prescribed deadlines. The extended deadlines are as follows:
Businesses formed before January 1, 2024: File your BOI Reports by January 13, 2025.
Businesses formed between September 4, 2024, and December 23, 2024: File your BOI reports by January 13, 2025, or within 21 additional days of your original deadline.
Businesses formed after January 1, 2025: File your BOI reports within 30 days of formation.
The Federal Crimes Enforcement Network - FINCen - is a Department of the Treasury bureau that works to detect and prosecute financial crimes. In its Notice to Customers, BOI Reference Guide, FINCen explains the BOI:
Effective January 1, 2024, Federal law — the Corporate Transparency Act (CTA) — requires certain entities, including many small businesses, to report information about the individuals who ultimately own or control them (also known as their “beneficial owners”) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. A separate regulatory requirement currently requires many financial institutions to also collect beneficial ownership information from certain customers that seek to open accounts as part of Federal customer due diligence requirements.
Action Zone collaborator, Attorney Kalpesh J.Patel of Patel Law PLLC, has provided this guidance for all businesses.
(Recommended) Resource for Self-Filing: Attorney Patel has created a step-by-step guide to simplify the process. Access the guide here: How to File Your Initial Beneficial Ownership Information Report.
Guidance on Filing Requirements: Determine whether your business needs to file and understand the necessary steps. Schedule a quick consultation with Attorney Patel using this link: https://calendly.com/fl-patel-law-pllc/beneficial-information-report-boi-report.
It is critically important that you determine your requirement to file a BOI report before the stated deadlines. Failure to do so may result in significant penalties: civil fines of $500 per day for late reports and criminal penalties of up to $10,000 and/or two years imprisonment for willful violations.
Businesses have been inundated with emails and phone calls soliciting your business to file a BOI on your company's behalf. Business owners are not required to use a third party to file their BOI Report and, in most cases, the process is simple and straightforward. With the guidance provided by Patel Law PLLC and the FinCEN site, most business owners are able to file their own report without any expense.
We are providing this important update to Action Zone members, alumni, and community partners and encourage you to share the new deadline information with your professional network.
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