With less than 80 days left until the end of the year, many businesses are still unaware of a critical federal requirement under the Corporate Transparency Act (CTA). As the deadline rapidly approaches, businesses must file their Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN) to avoid hefty fines and penalties.
What is the Corporate Transparency Act (CTA)?
The Corporate Transparency Act requires most U.S.-based businesses to submit a BOI report, which identifies individuals who own or control the company, also known as beneficial owners. This new law aims to increase transparency and reduce the misuse of shell companies for illegal activities, such as money laundering, tax evasion, or hiding assets.
The government agency responsible for enforcing this law is FinCEN, a name unfamiliar to many business owners. By January 1, 2025, FinCEN expects to receive over 32.6 million BOI reports, as businesses nationwide scramble to meet the deadline.
Why the Corporate Transparency Act Deadline Matters
Despite the broad impact of the CTA, many businesses are still unaware of the filing requirements. Failing to comply with this law could result in significant fines—up to $591 per day, with a cap of $10,000 per business. As of now, only 5.3 million businesses have submitted their BOI reports, meaning tens of millions are still at risk of non-compliance.
Accountants and CPAs have also been slow to act. Many have been waiting to see whether the law would face legal challenges, but now it’s clear—the Corporate Transparency Act is here to stay. With less than 80 days to go, the question is whether accountants can help their clients meet the deadline in time.
What You Need to Know About BOI Reporting
The BOI report requires detailed information about the reporting company and the business’s beneficial owners, including personal identification numbers (such as Social Security numbers), birth dates, home addresses, and tax ID numbers. This is sensitive information that most business owners have never needed to submit before.
For accountants, the process of collecting and managing this data is daunting, particularly for firms handling multiple clients. It’s not just about the initial filing—any changes to beneficial ownership must be reported to FinCEN within 30 days. Given the complexity of the reporting process and the volume of data required, many accountants are finding it difficult to manage the task while ensuring data security.
FinCEN’s Role in Educating Businesses
Throughout 2024, FinCEN has been actively trying to raise awareness about the Corporate Transparency Act and BOI reporting requirements. They’ve hosted live events across the country and attended major industry conferences, like the IRS Tax Forum, to educate professionals and answer questions. FinCEN has also launched a national marketing campaign to inform businesses, yet millions remain unaware of the new law and its impact.
The Consequences of Non-Compliance
The penalties for failing to file a BOI report are severe. Recently, FinCEN made headlines by issuing a $3 billion fine to TD Bank for “willful” misconduct, sending a strong message about their willingness to enforce compliance. While this fine wasn’t related to BOI reporting, it highlights FinCEN’s commitment to cracking down on financial crimes, and the same level of enforcement could soon be applied to businesses that fail to meet the Corporate Transparency Act’s reporting requirements.
How FileForms Can Help You Meet the Corporate Transparency Act Deadline
The best way to avoid last-minute stress and hefty fines is to file your Beneficial Ownership Information report now. At FileForms, we provide businesses and accountants with everything they need to meet their Corporate Transparency Act compliance obligations. Our platform simplifies the BOI reporting process, allowing users to complete filings in as little as 10 minutes.
With our bulk upload filing feature, accountants can easily export information from their internal systems and submit reports for multiple entities or clients using FileForms. Our system is integrated directly with FinCEN, ensuring instant and secure submission. Plus, with automated data capture and SOCII-compliant technology, you can rest assured that your sensitive information is protected.
FileForms was built exclusively for BOI reporting, with input from thousands of business owners, CPAs, and legal experts, making us the trusted solution for CTA compliance.
Avoid Penalties—File Your BOI Report Today
Don’t wait until the last minute to file your BOI report and risk fines of up to $10,000 per entity. Visit FileForms today to ensure compliance with the Corporate Transparency Act and avoid costly penalties. With our simple, secure, and fast filing process, you can focus on running your business with peace of mind.
