ARTICLE
11 November 2024

CTA Breaking News: FinCEN Announces Six-Month BOI Reporting Extension In Hurricane Areas

With the Jan. 1, 2025, deadline fast approaching for companies to submit their Beneficial Ownership Information (BOI), the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN)...
United States Corporate/Commercial Law

With the Jan. 1, 2025, deadline fast approaching for companies to submit their Beneficial Ownership Information (BOI), the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has announced a six-month extension for businesses in hurricane-impacted areas.

The extension applies to businesses impacted by hurricanes Beryl, Debby, Francine, Helene, and Milton, and the main requirement is that a reporting company is in an area that is designated both by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance, and by the Internal Revenue Service (IRS) as eligible for tax filing relief.

The Corporate Transparency Act (CTA) is a federal law that requires businesses to disclose and report information about their owners and controllers to FinCEN. The deadline is Jan. 1, 2025, for businesses that existed prior to Jan. 1, 2024. Information required for the BOI Report includes the names, addresses, and birth dates of individuals who own twenty-five percent (25%) or more of a legal entity, those with substantial control of the entity, and those who filed the formation documents creating or registering the company with the state ("Company Applicant"). FinCEN has set up the BOI E-Filing system for reporting.

BOI reporting relief is part of a coordinated federal response to the damage caused by natural disasters and is based on local damage assessments by FEMA. These 2024 hurricanes have caused widespread damage and disruption to businesses across the affected regions, and this extension will provide businesses with additional time to focus on recovery efforts, rebuilding infrastructure, restoring operations, and addressing employee needs.

FinCEN is providing this relief to reporting companies that meet two requirements: 1) have an original reporting deadline beginning one (1) day before the date the specified disaster began and ending ninety (90) days after that date, and 2) are located in an area that is designated both by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance and by the Internal Revenue Service (IRS) as eligible for tax filing relief.

Here are links to the five different notices published by FinCEN:

Businesses that are eligible for the extension should carefully review the specific dates and requirements outlined in FinCEN's notice. It is important to note that this extension does not automatically apply to all businesses. Eligible businesses may need to provide documentation to support their claim for the extension.

In addition, FinCEN will work with any reporting company whose principal place of business is outside the disaster areas but that must consult records located in the affected areas to meet the deadline. Reporting companies with a principal place of business outside the affected areas and that are seeking assistance in meeting their filing obligations should contact FinCEN at https://www.fincen.gov/boi.

Conclusion

Many businesses were forced to close temporarily or permanently from the 2024 hurricanes. Those that remained open have also faced significant challenges, including supply chain disruptions, labor shortages, and increased costs. By extending the BOI reporting deadline, FinCEN is recognizing the circumstances faced by these businesses and providing them with the necessary flexibility to recover.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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