Corporate Transparency Act Update: The Ping Pong Continues

If you’ve been following the back-and-forth on the Corporate Transparency Act (CTA), you know it’s been a legal game of ping pong. The law was enacted, challenged in court, blocked, reinstated, and now, once again, businesses must comply with its Beneficial Ownership Information (BOI) reporting requirements. As of February 17, 2025, the reporting obligations are back in effect, and the current deadline for most businesses is March 21, 2025.

Understanding the BOI Report

The Beneficial Ownership Information (BOI) report is a new federal requirement under the Corporate Transparency Act (CTA). It requires businesses to disclose key details about individuals who own or control the company. This includes:

• Full legal name

• Date of birth

• Residential address

• A unique identifying number from an official document (such as a passport or driver’s license)

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Reports must be filed electronically through the Financial Crimes Enforcement Network (FinCEN), and businesses must ensure accuracy to avoid penalties.

Deadlines: 

Formed on or before Feb. 19, 2025? File by March 21, 2025.

Formed after Feb. 19, 2025? File within 30 days.

Penalties for Non-Compliance

Failing to file a BOI report on time or submitting false information can result in serious penalties. Businesses that do not comply may face civil penalties of up to $500 per day for ongoing violations. Additionally, willful failure to report or providing false information can lead to criminal penalties, including fines of up to $10,000 and imprisonment for up to two years. Ensuring compliance is essential to avoid these costly consequences.

Beware of Scams

Scam attempts related to BOI filing appear in multiple forms, including online ads, emails, and even paper mail. Some third-party services charge high fees for something business owners can do themselves. Others mislead businesses into believing they must use their service to comply. Be cautious and verify information before taking action. A quick Google search for BOI filing may show many third-party services that offer to handle the report for a fee. Be cautious—many of these services charge high fees and don’t have professionals on staff. Some even mislead businesses into believing they are required to use their service.

How to File Yourself

You can file your BOI report directly with FinCEN at https://www.fincen.gov/boi for free. There is no requirement to use a third-party service.

Need Professional Help?

If you need guidance or prefer to have a professional handle your filing, our office is available to assist. Contact us at (618) 997- 3436 to ensure your report is filed correctly and on time. Staying compliant is crucial—don't let misinformation or unnecessary fees trip you up!

If you’d like our assistance in filing the report, here is a link to our questionnaire to get started.