BOI update: 6.5 million of 32 million reports filed so far

With less than two months left for most small businesses to file beneficial ownership information (BOI) reports, the Financial Crimes Enforcement Network (FinCEN) has received a fraction of the expected 32 million reports, a FinCEN representative said Thursday during the AICPA’s Town Hall.

New businesses created in 2024, which are under tighter deadlines to file the reports than older businesses, account for many of those, said Phil Lam, FinCEN’s beneficial ownership operations and innovation chief.

“This past week, we’ve crossed over 6.5 million filings,” Lam said. “Now this is tracking more closely towards new businesses that have been created this year.”

He did not say how many of those filings are from businesses formed in 2024.

Filing requirements

Companies created in 2024 have 90 days from their creation date to file BOI reports, while the deadline for companies created before 2024 is Jan. 1.

Companies founded or registered on or after Jan. 1, 2025, must submit a BOI report within 30 calendar days of registration. Companies must file updated or corrected BOI reports within 30 days of any modifications or updates to their company information or beneficial owners.

Background

Under the Corporate Transparency Act (CTA), P.L. 116-283, which Congress passed in 2021 as an anti-money-laundering initiative, reporting companies must disclose the identity and information about beneficial owners of the entities. For new entities incorporated after Jan. 1, 2024, reporting companies must also disclose the identity of “applicants” — defined as any individual who files an application to form a corporation, limited liability company, or other similar entity.

Hurricane relief

Last month, FinCEN provided an extra six months for certain small businesses affected by hurricane damage to file BOI reports, including updates or corrections to previous reports.

FinCEN extended the filing deadlines for reporting companies that have an original reporting deadline beginning one day before the date the specified disaster began and ending 90 days after that date and are located in an area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance and by the IRS as eligible for tax filing relief.

The AICPA had advocated for extensions; however, many AICPA members “would have liked to have seen a broader scope of relief,” Melanie Lauridsen, vice president–Tax Policy & Advocacy for the AICPA, told Lam.

Lam said FinCEN wanted to be “thoughtful and mindful” about providing the relief so that the process can be repeated. It followed what the IRS and FEMA have done, he said. FinCEN then landed on the time frame starting with when the storms began rather than including businesses with reports due Jan. 1 in the relief.

AICPA advocacy

The AICPA had sought extensions for BOI and reports of foreign bank and financial accounts (FBAR) in an Oct. 3 letter sent to FinCEN Director Andrea Gacki. FinCEN granted FBAR relief earlier in October.

The AICPA has resources on its Disaster Relief Resource Center page.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.