UPDATE (12/05/2024): Today, a federal court in Texas issued an injunction applying to taxpayers nationwide, where they state that small businesses affected by BOI reporting deadline of January 1, 2025, do not need to comply with the filing deadline.
However, the AICPA recommends that CPAs assisting their clients with the BOI continue to gather the information in case the injunction is lifted. Ludwig Business Consultants holds the utmost respect for the AICPA, and we agree with this approach.
Therefore, if we are filing the BOI on your behalf, please continue to send us the information mentioned in the original blog.
Please contact our Director of Taxation, Joseph Kim, if you have any questions or would like to discuss the matter further.
ORIGINAL POST (11/26/2024): The following notes have been provided by our Director of Taxation, Joseph Kim, CPA/MTS.
Starting 1/1/24 per 1010.380 in Title 31 of the Code of Federal Regulation, a domestic reporting company must file their BOI report electronically using Fin CEN’s secure filing system.
You may be asking: Do I need to file the report? The answer to the question depends. If you are a Corporation, an LLC, or a company created by the filing of a document with a Secretary of State, then you might be a domestic reporting company. We say “might” since there are exemptions available under the reporting rules. The following are some of the common exemptions:
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- State licensed insurance producer.
- Accounting firm.
- Tax Exempt entity (Entities set up under the IRC 501(c) and are tax exempt under 501(a)).
- Entities whose gross receipts are over $5 million, and employs more than twenty people in the United States.
- Investment company or investment advisor.
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The report is due:
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- For companies who were originally set up prior to 1/1/24, they must file by 1/1/25.
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- For companies who were set up after 1/1/24 but prior to 1/1/25, they must file 90 calendar days after receiving the actual or public notice that their company’s creation or registration is effective to file the report.
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- Companies created or registered after 1/1/25 will have 30 calendar days.
Now for the legal repercussions:
The willful failure to complete the report or to update beneficial ownership information to FinCEN, or the willful attempt to provide false or fraudulent beneficial ownership information, may result in a civil penalty of up to $500 per day that the violation continues, or criminal penalties—including imprisonment for up to 2 years and/or fines of up to $10,000. The senior officer of an entity which fails to file a required BOI report may be held accountable.
The beneficial owner is any individual who directly or indirectly:
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- exercises substantial control over a reporting company, or
- owns or controls at least 25% of the ownership interest of a reporting company.
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Please contact Ludwig Business Consultants PLLC at (215) 839-0985 if you have any questions regarding filing your BOI.
