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The Corporate Transparency Act (CTA) introduced Beneficial Ownership Information (BOI) reporting to increase transparency around who owns and controls certain companies. In general, BOI reporting required certain entities to report information about their beneficial owners (and, in some cases, company applicants) to the Financial Crimes Enforcement Network (FinCEN). FinCEN has now announced an interim final rule that removes BOI reporting requirements for U.S. companies and U.S. persons. As a result, domestic entities are now exempt from BOI reporting requirements under the CTA. This change means most U.S. businesses are no longer required to file BOI reports with FinCEN. However, certain foreign entities that are registered to do business in a U.S. state or tribal jurisdiction may still have BOI reporting obligations under the revised rule. FinCEN’s announcement is available here: https://www.fincen.gov/news/news-releases/fincen-permanently-ends-beneficial-ownership-reporting-requirements-millions. Practical Takeaway U.S. businesses should generally not file BOI reports unless they are a foreign entity that may be subject to the revised reporting requirements. If you are unsure whether your business has a remaining BOI obligation, please contact our firm for assistance. |
FinCEN Ends BOI Reporting for Most U.S. Businesses
