what is the boi report?
The Beneficial Ownership Information (BOI) Report from FinCEN (Financial Crimes Enforcement Network) is a requirement for companies, particularly small businesses, starting in 2024. The goal of the BOI report is to provide the government with information on individuals who own, control, or benefit from a company (beneficial owners), helping to prevent money laundering, tax evasion, and other illicit activities.
Why Companies Need to File:
Companies are required to file the BOI report as part of the Corporate Transparency Act (CTA) to enhance transparency and ensure the government can track the true owners behind companies. This is a key measure in fighting financial crimes and increasing accountability in corporate ownership structures.
Penalties for Non-Compliance:
Failure to submit the BOI report can result in significant penalties. The penalties include:
- Civil penalties: Up to $591 per day for non-compliance.
- Criminal penalties: Fines up to $10,000 and/or 2 years imprisonment for willful failure to file or providing false information.