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Expert BOI  Reporting Under the CTA (Corporate Transparency Act)

At HIGHBORN CPA, we understand the importance of accurate and timely BOI reporting for safeguarding your business’s reputation and avoiding costly civil penalties (up to $500/day) and criminal fines and penalties for willful non-compliance. 

BOIR

Beneficial Owner Information

BOI Guide:

  • Beneficial Ownership Information (BOI) reporting is a crucial regulatory requirement designed to enhance transparency and combat financial crimes like money laundering and tax evasion. It requires entities to disclose key details about individuals who have significant control or ownership of the business.

  • Entities such as corporations, LLCs, and partnerships that meet certain criteria are mandated to file BOI reports. Compliance is not just about filing; it’s about accuracy and understanding the ongoing reporting obligations as changes in ownership occur.

  • Yes, officers such as the Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), President, or Managing Director can be considered Beneficial Owners if they meet certain criteria. Under BOI reporting requirements, any individual who exercises substantial control over the company, such as making key decisions or holding significant ownership interest, can be classified as a Beneficial Owner. It’s crucial to carefully assess each officer's role to determine their reporting obligations.

  • BOI reporting is a key component of regulatory compliance that helps authorities identify the true owners of businesses. This transparency is vital for maintaining the integrity of the financial system and ensuring that all businesses operate within the bounds of the law. Failure to comply with BOI reporting requirements can lead to severe penalties, including substantial daily fines and, in some cases, criminal charges.

  • Non-compliance with BOI reporting requirements is not something to take lightly. The penalties can be severe:

    • Civil Penalties: Up to $500 per day for each day a required report is not filed or is filed inaccurately.

    • Criminal Penalties: In cases of willful non-compliance, individuals can face criminal fines and up to two years of imprisonment.

    These penalties underscore the importance of understanding and adhering to BOI reporting requirements.

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