The BOI Filing Requirement on HOLD – originally due January 1st, 2025. An injunction from a federal court has paused the Corporate Transparency Act enforcement of the Beneficial Ownership Information report, but the possibility of enforcement remains in the future.  

The last weeks of 2024 offer an opportunity for tax planning and for setting up tax-favored business entities such as LLCs, LLCs taxed as S-Corp.s and Corporations.  This is a great time to work on finalizing your 2024 bookkeeping and we can help if needed.  The new BOI (Beneficial Ownership Information) report requirement enforced by FinCEN (Financial Crimes Enforcement Network) is on HOLD for now.  The filings are voluntary until further notice.  

 Tax planning at this time of the year, before Dec. 31st can result in significant tax savings at tax-time.  Let’s determine which of the possible tax saving decisions must be made NOW to save tax dollars for 2024! Call us NOW to schedule a tax planning session. 

Call us now to set up your tax-favored business entities such as LLCs, LLCs taxed as S-Corp.s and Corporations for 2024.  You must submit your entity formation applications to us no later than Friday, Dec. 13th to have a reasonable chance of approval for 2024.  

Bookkeeping for small businesses provides the business owner with the dashboard of finances required to make optimal business planning decisions throughout the year.  For any small business bookkeeping service requests, please reach out to Roxana@taxplus.com or Izaira@taxpus.com .   

Beneficial Ownership Information (BOI) Reporting on HOLD: Additional Information

FinCEN is now under a nationwide injunction restraining them from enforcing the Corporate Transparency Act (CTA), which is the law requiring BOI filings. The injunction is a preliminary injunction pending trial, though the injunction has already been appealed by FinCEN to the 5th Circuit, seeking a stay or reversal of the injunction pending trial.   

Due to the timing, it looks like companies will likely be safe from the requirement to file by Jan 1, since it’s unlikely (but not impossible) that the 5th Circuit will hear the appeal and issue a ruling before year end.  

That being said, this is by no means a permanent end to BOI filing requirements. SCOTUS may also eventually rule on this injunction, and even beyond that, there will be an eventual trial to decide the merits and then inevitable appeals.  

As a practical matter, the burden of complying with the CTA is minimal and would generally save clients from having to keep track of how the litigation pans out over time. For those clients who wish to wait for final resolution, they should still assemble the documents/information they’ll need in the event the CTA is eventually held to be enforceable.    

FinCEN, itself, has updated its website to reflect that the filings are now voluntary pending the resolution of its appeal. 

As of January 1st, 2024, as part of the Corporate Transparency Act, a new reporting requisite went into effect, requiring Limited Liability Companies (LLCs), LLCs taxed as S-Corp.s, Corporations, and most other entities registered with the Secretary of State to provide certain personal information to the Federal government.  

The new law aims for transparency as it requires disclosure about the owner(s) of an entity, or those who control an entity, in the report filed with FinCEN (Financial Crimes Enforcement Network).  

Original BOI Reporting Announcement

If your business entity was registered for business before 2024, you have until January 1st, 2025 to file this report. If your business entity is registered/formed between January 1st, 2024 and January 1st, 2025, the BOI report is due within 90 days of formation. If your business entity is registered/formed after January 1st, 2025, the BOI report is due within 30 days of formation.  

The initial one-time BOI Reports are required for each entity you own, and you must file an updated report within 30 calendar days of any changes to the entity or its beneficial owners. Failure to file this mandatory reporting can result in steep penalties of up to $500 per day. Failure to comply with this filing requirement may result in heavy civil and criminal penalties as enforced by FinCEN.  

The state of CA has signaled that tax preparers cannot file BOI reports for clients as it may amount to practicing law.  You are encouraged to file the reports yourself at: www.fincen.gov/boi 

We can help you to file these reports for a fee using a third-party service.  Please e-mail Brenda@taxplus.com or call us at 310.398.3231. 

***BOI Reports are Voluntary for now, until further notice. 

Please reach out to Mia@taxplus.com in L.A. at 310.398.3231 or to Jessica@taxplus.com in S.D. at 858.279.1640 to set up a tax planning conference with one of our Enrolled Agents, CPAs or Tax Attorneys.  We can work with you effectively in person or virtually.