What it is:
BOI stands for Beneficial Ownership Information. This is identifying information about individuals who own or control a company. The law that created the requirement to file these reports is called the Corporate Transparency Act (or CTA) and it was passed by Congress in 2021. It was created to reduce the ability of wrongdoers to profit from concealing illegal business activities. The Financial Crimes Enforcement Network, or FinCEN, is the governing body in charge of enforcement of the CTA and subsequently BOI Reports. Exact requirements of this act are still being developed and reviewed, and may include monetary fines for those who do not register by their required times, when in effect.
Is it Required?
Currently, there is a lot of confusion about whether or not BOI Reports are required. This is because of the CTA going back and forth, as Governing bodies have been repeatedly changing the requirements ever since it was first announced. There have been times when FinCEN has attempted to enforce the CTA, issuing notices to required companies, only to later repeal the notices after courts have deemed the requirement unconstitutional.
As of the date this post was created, the CTA is not currently in effect. This comes after a January 7, 2025 court case Smith V. U.S. Department of Treasury, where an injunction was put in place to halt the requirement for BOI Reports. The matter has not been entirely settled yet and laws and regulations around this are currently subject to change. BOI Reports are currently available for those wanting to complete them voluntarily on the FinCEN website, located at https://www.fincen.gov/boi.
Conclusion
At the moment, no action is needed, however the act is still up in the air on whether or not it will come into effect. Business owners eligible for reporting should make sure to keep up with any news that comes out regarding the CTA or BOI Reports. More information can be found at https://www.fincen.gov/boi.
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