On January 1st, 2024, the Financial Crimes Enforcement Network (FinCEN) will be collecting Beneficial Ownership Information (BOI) reports as required by Section 6403 of the Corporate Transparency Act. This new reporting requirement applies to most companies and LLCs and requires the disclosure of individuals who either:
• Exercise substantial control over a reporting company; OR
• Owns or controls at least 25 percent of the ownership interests of a reporting company.
FinCEN will collect information on both the company and its beneficial owners, including a relevant taxpayer/employer identification number (TIN/EIN) from the Internal Revenue Service for the company, and individually identifiable information on beneficial owners such as a drivers license or passport number. There is an option to apply for and use a FinCEN identifier as well.
Failure to file a report by December 31st, 2024, could lead to civil money penalties up to $500 per day, and criminal penalties of up to two years imprisonment and/or a $10,000 fine.