What is the deadline for submitting a BOI report?
The deadlines for submitting a Beneficial Ownership Information (BOI) report vary depending on the circumstances of the entity. Here are the key deadlines:
New Entities:
Initial Filing: New entities formed or registered on or after January 1, 2024, must file their initial BOI report within 30 days of their formation or registration. This ensures that FinCEN has current information on newly created entities from the outset.
Existing Entities:
Initial Filing Deadline: Existing entities formed or registered before January 1, 2024, must file their initial BOI report by January 1, 2025. This provides a one-year window for existing entities to comply with the new reporting requirements.
Annual Confirmation: While not explicitly mandated by FinCEN, it is considered best practice for existing entities to review and confirm their BOI information annually to ensure continued accuracy and compliance.
Changes in Beneficial Ownership Information:
Update Requirement: Entities must update their BOI report within 30 days of any change in beneficial ownership information. This includes changes in the individuals who qualify as beneficial owners, changes in ownership percentages, changes in control, and updates to personal information of beneficial owners (e.g., changes in name or address).
Examples of Changes Requiring Updates:
A new individual acquires a significant ownership interest in the entity.
An existing beneficial owner sells their interest and is no longer associated with the entity.
A beneficial owner changes their legal name, residential address, or identification number.
Correcting Inaccurate Information:
Correction Requirement: If an entity discovers that any previously submitted BOI information was inaccurate or incomplete, it must file a corrected report within 30 days of discovering the inaccuracy. This ensures that FinCEN has the most accurate and up-to-date information on file.
Extensions and Exceptions:
No Standard Extensions: FinCEN does not typically provide extensions for the initial filing or updates to BOI reports. Entities are expected to comply within the specified timeframes.
Exemptions: Certain entities may be exempt from BOI reporting requirements. Exempt entities are not required to file BOI reports, but they should maintain documentation supporting their exemption status.
Compliance and Best Practices:
Timely Filing: It is crucial for entities to file their BOI reports and any updates within the required timeframes to avoid penalties and ensure compliance with FinCEN regulations.
Regular Reviews: Conduct regular reviews of beneficial ownership information to identify any changes that may require updates to the BOI report.
Record Keeping: Maintain thorough records of all BOI filings and any supporting documentation, including information on beneficial owners and any changes made.
Professional Assistance: Consider engaging compliance experts or legal advisors to navigate the reporting requirements and ensure timely and accurate filings.
Penalties for Late or Non-Filing:
Failure to file the initial BOI report, updates, or corrections within the required timeframes can result in significant penalties, including civil fines and potential criminal charges for willful non-compliance.
Our firm offers comprehensive services to help you meet these deadlines and maintain compliance with BOI reporting requirements. We provide timely reminders, thorough reviews, and expert assistance to ensure that your filings are accurate and submitted on time.