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New federal law requires businesses to report company data

Posted at 2:04 PM, Dec 22, 2023
and last updated 2023-12-22 16:04:21-05

Starting January 1, 2024, there is a new reporting requirement going into effect requiring millions of business owners to file what's called a BOI (Beneficial Ownership Information) Report with the U.S. Department of Treasury. Congress imposed the requirement with the Corporate Transparency Act.

Business owners will need to visit The Financial Crimes Enforcement Network's (FinCEN) website to enter information about people who directly or indirectly own or control a company. FinCEN says it won't be accepting reports before the new year.

"It's a new rule that's helping to enforce some of the bad activity that goes on in our world largely with money laundering," said Mark Steber, Chief Tax Information Officer with Jackson Hewitt.

According to the FinCEN website, "23 types of entities are exempt from the beneficial ownership information reporting requirements. These entities include publicly traded companies meeting specified requirements, many nonprofits, and certain large operating companies."

If your company was created or registered in 2024, you have 90 days to file your information with FinCEN. If your business existed before 2024, you have until January 1, 2025 to file.

Click here to read FinCEN's responses to frequently asked questions about the new requirement.