As we move past the tax season and the new year draws closer, we shift the attention to the looming Beneficial Ownership Information (BOI) reporting requirements. With the January 1, 2025, deadline fast approaching, non-compliance could result in substantial penalties—up to $500 per day—or even criminal charges in severe cases.
For businesses, especially LLCs and corporations, these requirements cannot be ignored. At GreenGrowth CPAs, we’re committed to keeping you informed and prepared. This article covers the most critical updates and actionable steps for meeting the 2025 BOI filing requirements, helping you stay compliant and penalty-free.
What’s New for BOI Reporting?
The Financial Crimes Enforcement Network (FinCEN) recently reinforced the importance of meeting BOI filing deadlines, stressing stricter enforcement measures as we approach the 2025 deadline. This heightened oversight means businesses must prioritize timely and accurate BOI report submissions to avoid both financial penalties and reputational risks.
Key updates include:
- Expanded Reporting Obligations: New entity types such as limited liability partnerships (LLPs) and certain foreign entities doing business in the U.S. are now required to file BOI reports, closing previous loopholes in ownership reporting.
- Increased Collaboration: FinCEN is actively collaborating with state authorities and financial institutions to cross-verify beneficial ownership data. This makes it easier for the government to identify discrepancies and penalize inaccurate or incomplete filings.
These changes emphasize the need for businesses to stay diligent in ensuring they meet reporting requirements accurately and on time.
New IRS Guidance on Compliance Tools
To assist businesses and CPA firms with the evolving BOI reporting requirements, the IRS has introduced a new self-service platform called BOI-eFile. This platform is designed to simplify the reporting process, making compliance easier and reducing the risk of penalties for incorrect or late submissions.
Here’s how BOI-eFile can provide support:
- Streamlined Filing: Ensure your filings meet FinCEN’s requirements without adding extra liability for your firm.
- Client Protection: CPA firms can help clients avoid penalties by leveraging this platform for timely submissions.
Built-in verification features further reduce the risk of reporting errors, helping both firms and businesses stay compliant as deadlines approach.
Practical Steps for Ensuring BOI Compliance
With new tools and stricter enforcement in place, here’s what your business should focus on to stay ahead of the 2025 deadline:
- Review Ownership Records: Double-check that all beneficial ownership information is accurate and up to date, especially if there have been changes in ownership or company structure.
- Familiarize Yourself with BOI-eFile: If you haven’t yet explored the BOI-eFile system, now is the time to ensure smooth, error-free filings. Consider setting up internal processes to streamline data gathering and updates.
- Prepare for Ongoing Updates: BOI reporting isn’t just a one-time filing. You must submit updates within 30 days of any changes to your ownership structure. Make sure you have processes in place to handle this quickly.
By taking these steps now, businesses can avoid last-minute scrambling and ensure compliance well before the January 2025 deadline.
Why Is BOI Compliance Important Now More Than Ever?
Non-compliance with BOI reporting requirements can result in significant financial penalties—up to $500 per day. Additionally, incorrect or late filings could lead to reputational damage, audits, or even criminal charges in severe cases.
CPA firms play a critical role in helping their clients meet these deadlines without the stress of last-minute filings. BOI-eFile allows firms to not only meet compliance needs but also strengthen their advisory role with clients, reinforcing their value as trusted partners.
Key Deadlines to Keep in Mind
- Initial BOIR Filing: Entities formed before January 1, 2024, must file their BOIR by January 1, 2025.
- Entities Losing Exemption: If an entity loses its exemption during 2024, it must file its BOIR by January 1, 2025, or within 30 days of losing the exemption.
- A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.
- A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.
Stay Ahead of the Curve
As a business or CPA firm, staying proactive about regulatory changes is essential. At GreenGrowth CPAs, we’re here to guide you through these changes and ensure your business remains fully compliant.
For more detailed information, be sure to read our previous article: BOI Reporting Update: Key FAQs and Tips Before 2025 Deadline
This article is for informational purposes only and does not constitute legal advice or services related to FinCEN BOI compliance or BOI reporting rules.
