BOI Reporting: FinCEN (CTA)

“The whole process from start to finish was seamless. Glen was a pleasure to work with; efficient, kind and helpful! We will be using EAS Income Tax Services for all of our tax needs in the future!”

Paul H.

Corporate Transparency Act (CTA): What Your Business Needs to Know

At EAS Income Tax Services, we prioritize keeping our clients informed about critical changes in regulations that could impact their businesses. The Corporate Transparency Act (CTA) is one such change, enacted as part of the National Defense Authorization Act for Fiscal Year 2021. This new law requires certain businesses to report Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN) to enhance transparency and combat financial crimes like money laundering and terrorism financing.

As your trusted tax accountant, our goal is to ensure you understand BOI reporting requirements and how they may affect your business.

BOE Reporting: Who Needs to File?

If your business is a corporation, limited liability company (LLC), or a similar entity created by filing with a Secretary of state or tribal office, you may be required to file under the CTA. This reporting requirement applies to both domestic and foreign entities doing business in the U.S. through such filings.

However, there are several categories of exemptions, which include:

• Large operating companies meeting the following criteria:
  • Employ more than 20 full-time U.S. employees.
  • Report gross revenues over $5 million on the prior year’s tax return.
  • Have a physical office in the U.S.
• Publicly traded companies.
• Heavily regulated entities such as banks, credit unions, securities brokers, and public accounting firms.
• Non-profit and tax-exempt organizations.

If your business qualifies for an exemption or if you are uncertain about your obligations, EAS Income Tax Services, your Atlanta tax accountant, can help you evaluate your situation.

Filing directly through the FinCEN website is free, however, many CPA firms including EAS, are offering this feature as an added service to our clients.

For current tax clients, we’re offering this service for $149 / filing.

If your business was in existence prior to January 1, 2024, and you would like to sign up for this service, please contact us by December 1, 2024, and no later than December 15, 2024, to ensure that we are able to process your filing before the January 1, 2025, deadline.  

For businesses that were started in 2024, please contact us immediately.  As noted above, new businesses started in 2024 have only 90 days to register after startup.

Please note that this is NOT an Annual Filing requirement.  Once an initial and accurate report has been filed – only changes to the BOI report filing will require an additional filing.

BOI Reporting: What Information Must Be Reported?

For businesses that must comply, the following information must be submitted through FinCEN’s BOI E-Filing System:

1. Company Information:
   • Full legal name.
   • Tradenames or DBAs (if applicable).
   • Business address.
   • State or Tribal jurisdiction of formation or registration.
   • IRS Tax Identification Number (TIN).
2. Beneficial Owner Information:
   • Full legal name.
   • Date of birth.
   • Residential address.
   • Unique identification number (e.g., passport, driver’s license) along with an image of the document.

A beneficial owner is defined as any individual who:

• Exercises substantial control over the entity (e.g., key decision-makers or senior officers), or
• Owns or controls at least 25% of the ownership interests in the company.

For newly formed entities, you’ll also need to report the details of the company applicant, who is the individual responsible for filing the formation documents. This requirement applies to entities created on or after January 1, 2024.

Filing Deadlines and Penalties for Non-Compliance

The CTA establishes strict deadlines for filing BOI reports:

• New entities (formed in 2024) must file their initial BOI report within 90 days of formation or registration.
• New entities (formed after Dec. 31, 2024) – must file within 30 days.
• Existing entities (formed before January 1, 2024) have until January 1, 2025 to file their initial report.
• Reporting companies that have changes to previously reported information or discover inaccuracies in previously filed reports – must file within 30 days.
• Any changes to previously reported information, such as a change in beneficial ownership or an address change, must be updated within 30 days of the change.

Failure to comply with these filing requirements can result in significant penalties, including:

• Civil penalties of up to $591 per day for each day a violation continues.
• Criminal fines of up to $10,000, and up to two years of imprisonment for willful violations

Key Privacy Protections

It’s important to note that the BOI information you report will be held in a secure, non-public database maintained by FinCEN. Access to this information is strictly limited to certain government agencies and financial institutions, including:

• U.S. federal agencies engaged in national security, intelligence, or law enforcement.
• State, local, and tribal law enforcement agencies, with court authorization.
• Financial institutions, for use in their legally required customer due diligence, but only with the customer’s consent.
• Federal and state regulators overseeing compliance with customer due diligence obligations.
• Certain foreign authorities, but only through appropriate U.S. federal channels.

This information will not be made available to the general public, so while compliance is mandatory, your privacy is protected to the fullest extent possible under the law.

How EAS Income Tax Services Can Help

Navigating the requirements of the Corporate Transparency Act may feel daunting, but you don’t have to face it alone. At EAS Income Tax Services, we’re here to help with:

• Determining if your business must file a BOI report.
• Preparing and filing BOI reports accurately and on time.
• Assisting with updates to maintain compliance.

As a leading Atlanta tax accountant and expert in tax resolution services, we’re committed to simplifying compliance for our clients. For complex legal issues, however, we recommend consulting with an attorney to ensure full compliance with all aspects of the CTA. If there are any legal uncertainties or complex issues, we strongly advise clients to consult with an attorney to ensure full compliance with the law.

Offering BOI reporting services to our clients is part of our commitment to providing personalized, stress-free service, ensuring that your business stays compliant with all IRS and government regulations. If you have any questions or would like to discuss how this may impact your business, please don’t hesitate to reach out. You can contact me directly at (404) 719-0330 or email me at glg@eas.tax.

Thank you for continuing to trust EAS Income Tax Services with your tax and compliance needs. We look forward to helping you navigate this new landscape with confidence.