We wanted to make you aware of a significant new financial reporting requirement that began January 1, 2024. Starting this year, there is a Beneficial Ownership Information (“BOI”) reporting requirement. The BOI is an anti-money laundering initiative enacted through the Corporate Transparency Act (“CTA”). It mandates that BOI be reported. The requirement applies to most companies. The rule requires reporting companies to file reports with FinCEN that identify two categories of individuals: the beneficial owners of the entity and the company applicants of the entity. The goal of reporting the BOI to FinCEN is that law enforcement, financial institutions, and other authorized users are supposed to have timely access to information to help combat corruption, money laundering, terrorist financing, tax fraud, and other illicit activity.
Reporting companies may complete the BOI electronically by accessing the BOI E-Filing portal at https://boiefiling.fincen.gov/. More information is located at the following website: https://www.fincen.gov/boi-faqs.
As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. However, this civil penalty amount is adjusted annually for inflation. As of the time of publication of this FAQ, this amount is $591.
If you have any questions or concerns, please do not hesitate to contact us at (406) 969-2200 or info@elite-act.com.
