The U.S. Treasury and the Financial Crimes Enforcement Network (FinCEN) are ramping up efforts to inform business owners nationwide about the requirements for Beneficial Ownership Information (BOI) reporting. With the deadline fast approaching, approximately 32 million businesses are expected to file a BOI report with FinCEN within the next 140 days.
As of June, FinCEN reported that it had directly reached only 90,000 stakeholders through engagements with secretaries of state, government agencies, industry groups, congressional offices, service providers, chambers of commerce, and other channels. Despite these efforts, concerns remain about whether enough businesses are aware of the upcoming requirements and deadlines.
“There is a massive education and outreach effort,” Treasury Secretary Janet Yellen stated during a July session with the House Financial Services Committee. However, several members of the House from both parties expressed doubts about the effectiveness of these outreach efforts. Yellen informed the committee that, so far, just under three million of the estimated 32.6 million businesses required to file BOI reports have done so—an alarming statistic given the limited time left.
“That is an abysmal number, particularly when we have less than six months left in your timeline to help be able to execute,” remarked Rep. Zach Nunn, a Republican from Iowa, emphasizing the gravity of the situation.
The Corporate Transparency Act (CTA), passed by Congress in 2021 as part of a broader anti-money-laundering initiative, mandates that reporting companies disclose the identity and information of their beneficial owners. This reporting requirement aims to increase transparency and prevent illicit financial activities.
Businesses created or registered before January 1, 2024, are required to submit their BOI reports by January 1, 2025. In contrast, companies founded or registered on or after January 1, 2024, must submit their BOI reports within 90 calendar days of registration. Starting January 1, 2025, businesses will have just 30 days from registration to comply. Additionally, any updates or corrections to company information or beneficial owners must be reported within 30 days.
Despite legislators’ concerns, Yellen made it clear that FinCEN, which operates under the Treasury, will not extend the BOI reporting deadline. “We’ve seen a good response so far and don’t think it’s going to be necessary to extend the time frame,” she asserted.
The stakes are high for business owners. Penalties for willful violations include fines of $591 per day, up to a maximum of $10,000, and potential imprisonment for up to two years. Unauthorized disclosure of BOI is also subject to severe penalties. The cumulative liability could be significant for those with interests in multiple reporting companies.
You will face the upcoming deadline if you are a business owner who has not yet filed a BOI report. FileForms offers a straightforward and secure solution to get compliant. Our industry-leading platform, which is SOC II compliant, allows you to file your BOI report directly with FinCEN in just ten minutes or less.
FileForms has partnered with thousands of industry professionals (including CPAs and Law Firms), associations, and corporate services organizations to assist the millions of businesses that must file by January 1, 2025. Whether you’re a small business or a complex firm managing multiple entities, we offer a variety of reporting solutions tailored to your needs. Avoid the risk of penalties—trust FileForms to help you meet your BOI reporting requirements efficiently and on time.
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