BOI Reporting is Coming Soon
Effective January 1, 2024, the Corporate Transparency Act (CTA) will require most business entities to file an initial report with the Financial Crimes Enforcement Network (FinCEN) to disclose the entity’s beneficial owners.
Entities that existed before January 1, 2024 have until January 1, 2025 to comply with the new law. The Treasury Department estimates that 32.6 million initial and 6.6 updated reports will be filed in 2024; in 2025 and forward, 5 million initial and 14.5 million updated reports will be filed yearly.
There has been much debate in the tax community as to the typical tax practice’s role in helping their small business clients navigate this new requirement. There is not one correct approach except that simply ignoring it is inadvisable. There will be an extensive discussion about this later in the article.
Go to FinCen Website about BOI: https://boiefiling.fincen.gov/