New Business Reporting Requirement Coming Soon
Starting Jan. 1, 2024, most companies created in or registered to do business in the U.S. will need to report information on their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) under the Corporate Transparency Act (CTA).
The CTA includes an anti-money laundering initiative that mandates that business ownership information (BOI) information be reported to FinCEN. It is estimated that there will be 32.6 million filings in 2024 and 5 to 6 million filings each year thereafter, with the potential for steep penalties for the taxpayer.
Existing companies will file between Jan. 1, 2024, and Jan. 1, 2025. Companies created after Jan. 1, 2024, or companies that have a change in ownership or need to correct information, will have 30 days to file.
Learn more about the BOI requirements below.
Resources from AICPA & CIMA:
IssuesWatch Podcast episode with Ed Zollars, CPA: