Where Are The Business Owners?

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The Corporate Transparency Act (CTA) requires every entity that does not fall under a limited exemption to file a BOR with FinCEN by the end of 2024.

United States Corporate/Commercial Law

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The Corporate Transparency Act (CTA) requires every entity that does not fall under a limited exemption and was created prior to 2024, to file a beneficial owners report (BOR) with FinCEN by the end of 2024. Entities formed in 2024 have 90 days from formation to file. Starting in 2025, that requirement drops to 30 days.

We have filed many BORs for our clients, but we know that there are many more businesses out there that are either unaware of this requirement or have put it aside for another day. That deadline is coming and missing the deadline may prove to be very costly for business owners.

How costly? Here are the penalties under the CTA, found at 31 U.S.C. §5336(h):

"31 U.S. Code §5336. Beneficial ownership information reporting requirements.

(h) PENALTIES.—

(1) REPORTING VIOLATIONS.—It shall be unlawful for any person to—

(A) willfully provide, or attempt to provide, false or fraudulent beneficial ownership information, including a false or fraudulent identifying photograph or document, to FinCEN in accordance with subsection (b); or
(B) willfully fail to report complete or updated beneficial ownership information to FinCEN in accordance with subsection (b). ..........

(3) CRIMINAL AND CIVIL PENALTIES.—

(A) REPORTING VIOLATIONS.—Any person that violates subparagraph (A) or (B) of paragraph (1)—

(i) shall be liable to the United States for a civil penalty of not more than $500 for each day that the violation continues or has not been remedied; and
(ii) may be fined not more than $10,000, imprisoned for not more than 2 years, or both."

Don't put yourself in a position to be penalized under the CTA. File your BOR online TODAY or engage someone to do it for you. Waiting until the very end of the year puts you at risk of being turned away. Scarinci Hollenbeck, LLC is here to help you with your CTA filing needs.

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