As a reminder, we are only six weeks away from the January 1, 2025, Corporate Transparency Act (“CTA”) deadline. Note that there is no extension available for this deadline.
Incorrect Self-Filings.. An incorrectly filed BOIR is considered non-compliant under the CTA and could be subject to civil and criminal penalties as outlined on the FinCEN website. Whenever an entity is owned by a non-human entity (a trust or another entity) the complexity of the filing increases exponentially and important information is often forgotten on the BOIR. We continue to see the majority of self-filed reports completed incorrectly, requiring corrected reports. If you have completed any BOIR filings for any of your business ownership, please send record of these filings to our office at: records@mlutah.com.
Inactive Entities. If you own an entity and do not use it anymore, chances are a BOIR is still required. We strongly recommend you review Sections L. 2. and C. 13. of the FinCEN FAQs. The requirements are very complex, all requirements must be met, and some conditions vary by state. Do not assume that you do not have to file simply because you have not been using an entity.
Election. Many have judged that the outcome of the presidential election will lead to the repealing of these requirements. However, this law is still in force and has not been repealed. Choosing to not file based on the hope that the law will be repealed is a liability you assume upon yourself. Our office recommends you take the steps necessary to be compliant with the law as it currently stands as the civil and criminal penalties are severe.
Act Now. We have received questions and requests to file from many of you and expect this to continue. With this volume increase and the end-of-year deadline swiftly approaching, the fee for our office to file a BOIR will increase to $900/entity per filing on Tuesday, November 26th. This fee will continue to increase as we approach year end. We recommend you contact us immediately if you would like us to complete BOIR filings for you.
The following are resources we highly recommend you review. We can also be reached at:
CTA@mlutah.com or (385) 317-0228.
We understand that these changes are confusing and arduous, and we thank you for your continued
patience and diligence as we navigate these uncertainties together. We look forward to hearing
from you soon.
BENEFICIAL OWNERSHIP INFORMATION REPORTING FAQs
Does my trust need to file a BOIR? Trusts prepared by McCullough Law will not need to file a BOIR. However, entities owned by trusts are required to file.
Can you provide me with the information I need to file the report? Due to heightened liability, we cannot provide reporting information for BOIR filings if we are not engaged to prepare or review the report. We can, however, file the reports for you or direct you to the FAQs provided by Financial Crimes Enforcement Network (FinCEN).
Your office prepared all my documents, why do I need to provide you information? To ensure compliance, all information used to prepare the BOIR filing must be current and accurate. As such, we may request information that seems redundant.
What happens if my report is filed incorrectly? Incorrect filing constitutes non-compliance with the Corporate Transparency Act (“CTA”), which can result in severe civil and criminal penalties, including but not limited to $591/day (indexed for inflation) per entity and two years in prison.
What if I do not provide information/payment in time? Specific deadlines may be given for information/payment, which must be met to ensure the work is complete by the January 1, 2025 deadline. If these deadlines are not met, we cannot guarantee the price of filing or that the filing will be completed prior to January 1, 2025.
Can I file the BOIR by myself? A BOIR may be completed through the FinCEN Website at www.fincen.gov/boi. There is no charge for this filing. We recommend reviewing the Frequently Asked Questions prior to filing.