BOI Reporting Deadline is Just Three Months Away – TaxBandits Has You Covered!
Under the Corporate Transparency Act (CTA), reporting companies established before January 1, 2024, are required to submit their BOI reports by January 1, 2025 — just over three months away. Failure to comply with this deadline will result in serious legal consequences and penalties.
Therefore, it’s time for most small businesses operating in the U.S. to fulfill their BOI reporting requirement and ensure compliance with FinCEN!
Let’s take a closer look at the requirements and process for BOI reporting.
FinCEN Estimation About BOIR Submission
According to FinCEN estimates, over 32.6 million existing reporting companies established before January 1, 2024, across the U.S. must submit the BOI report.
However, the number of BOI reports submitted to date is significantly lower than FinCEN’s estimation. This means that many businesses have yet to submit their BOI reports. If your business is one of them, it’s time for you to prepare and submit the BOI report on time.
Remember, timely submission of BOI reports with accurate and up-to-date information is essential not just to avoid penalties but to ensure good standing with FinCEN!
Who is Required to Submit the BOI Report?
Any company that falls under the “Reporting Company” definition must file the BOI report with FinCEN. Generally, the reporting company can be classified into two categories such as:
- Domestic companies that are established under U.S. tax laws, including LLCs, Corporations, and other partnerships.
- Foreign companies that are established outside the U.S. and are registered in the U.S. to carry out their business operations.
There are 23 types of companies exempted from BOI reporting. Check out the exemptions
What Information Should be Reported?
Following are the details that you must include in your BOI report.
Reporting company details – Your report must include the following information about your company.
- Name
- Trade Name or DBA
- Current business address
- Type of Business
- EIN
Information about beneficial owners – A beneficial owner is any individual or entity that has substantial control over a reporting company or owns or controls more than 25% of its ownership interest, either directly or indirectly. For each beneficial owner, you must provide the following information.
- Name
- Date of Birth
- Residential address
- Acceptable identification document images such as passport or driver’s.
Information about company applicants – A company applicant is a person responsible for preparing and filing the documents for registering the reporting company with the Secretary of State or with a similar office. Legal entities or organizations cannot be considered as a company applicant. For each company applicant, you must provide the following information.
- Name
- Date of Birth
- Address
- Acceptable identification document images such as a passport or driver’s license
Note: Company applicant details are required only for companies established before January 1, 2024.
Consequences for Late filing or Not filing the BOI Report
As mentioned earlier, failing to submit your company’s BOI report within the deadline will result in hefty penalties.
- Civil penalties – Up to $591 for each day of noncompliance
- Criminal penalties – Up to two years in prison and a fine amount of $10,000.
Get Started With TaxBandits to File Your BOI Report
With the deadline for submitting the BOI report for existing companies rapidly approaching, it’s crucial to do what is necessary to ensure compliance with FinCEN regulations. Completing the BOI report can be complex, with challenges that may lead to errors. This is where TaxBandits can help!
As a leading and trusted e-filing software with over a decade of experience, TaxBandits offers a user-friendly interface and innovative features that streamline the BOI reporting process, making it efficient and error-free.
Here are some of the tailored, time-saving features that TaxBandits offers to simplify your BOI reporting process:
- Comprehensive BOI Reporting: Supports all types of BOI reports, including initial, update, correction, and newly exempt entity reports.
- Step-by-Step Guidance: Provides clear, step-by-step instructions throughout the entire reporting process.
- Data Auto-Population: Auto-populate data from the Address Book to eliminate manual data entry.
- Report Scheduling: Schedule your BOI report at a preferred date, with the flexibility to make modifications before submission.
- Invite Beneficial Owners: Invite beneficial owners via secure email links to complete the reporting information.
Exclusive Features for Tax Professionals and Bulk Filers:
- BanditConnect: Provide a comprehensive portal customized with your branding for each of your clients, enabling secure and seamless collaboration.
- BanditCollab: Onboard team members and assign BOI reporting responsibilities effortlessly, streamlining the workflow.
Prepare to file your BOI report ahead of the approaching deadline with the efficiency and ease of TaxBandits.
