BOI Reporting is Back: What Businesses Need to Know

If you thought Beneficial Ownership Information (BOI) reporting was on hold, think again. Recent legal developments have reinstated the Corporate Transparency Act (CTA) requirements, making BOI reporting mandatory once again for applicable businesses. Here’s what you need to know. The newest deadline for most reporting companies to file their initial, updated, or corrected Beneficial Ownership Information (BOI) reports is March 21, 2025.

Why Is BOI Reporting Required?

The BOI reporting rule, enforced by the Financial Crimes Enforcement Network (FinCEN), is designed to prevent financial crimes such as money laundering and fraud by requiring businesses to disclose their true owners. This transparency helps law enforcement track illicit activities.

Who Must File?

Most corporations, LLCs, and similar entities registered in the U.S. or doing business here must file BOI reports unless they qualify for an exemption. Exemptions apply to heavily regulated entities like banks, credit unions, and publicly traded companies.

Please note that HawkEye Accounting and Tax has taken the stance that BOI reporting requirements are deemed to be legal services. Since HawkEye Accounting and Tax is not a law firm, nor do we employ any attorneys; we will not be responsible for BOI reporting requirements under the newly enacted Corporate Transparency Act (CTA.) HawkEye Accounting and Tax is currently recommending Main Street Business Service (a Mark J. Kohler company) to complete this requirement.

Key Deadlines and Requirements

New Businesses (formed in 2024 or later): Must file BOI reports within 90 days of formation.
Existing Businesses (formed before 2024): Have until January 1, 2025 to submit their BOI reports.
Updated or Corrected Reports: If any changes occur in ownership, the business must file an updated report within 30 days of the change.

What Information is Required?

BOI reports must include:

The entity’s legal name, trade name (if applicable), and address
IRS taxpayer identification number (TIN)
Beneficial owner details: Full legal name, date of birth, current address, and an identifying document (such as a passport or driver’s license)

What Happens If You Don’t File?

Failure to comply with BOI reporting can result in penalties, including civil fines of up to $500 per day and potential criminal charges. It’s essential for business owners to ensure they meet these new obligations to avoid unnecessary risks.

What’s Next?

FinCEN has hinted at potential changes to the BOI reporting rules, aiming to ease the burden on small businesses. However, as of now, compliance remains mandatory. If your business falls under these regulations, it’s time to act.

Final Thoughts

With BOI reporting back in effect, business owners must ensure they understand their obligations and file their reports on time. Staying ahead of compliance requirements will help protect your business from penalties and keep you on the right side of the law.

Need help navigating BOI reporting? Contact a professional to ensure compliance and avoid potential risks.