Dear Brown, Ells Clients,


I wanted to provide a heads up to all of our clients, just in case some tax clients without a current business may be contemplating a new business, that beginning in 2024, "Reporting Companies", i.e. all corporations, limited liability companies, and any other entities created by the filing of a document with the Secretary of State of any state in the United States, are required to file Beneficial Ownership Information (BOI) reports, unless their business is specifically exempted from filing this report. This does not sound like a big deal, however, Failure to file this new required BOI report properly, and/or timely, could result in penalties of $500 per day, up to $10,000 per violation, and a possible jail sentence.

The Corporate Transparency Act requires all Reporting Companies to file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FINCEN) of the U.S. Department of the Treasury, unless exempted by this legislation. The following is an excerpt from FINCEN's website regarding when BOI reports are required to be filed:

"Reporting Companies", i.e. companies required to file BOI reports, must file BOI reports by the following dates:

  • Reporting companies in existence prior to 2024 are required to file by the end of 2024,
  • Reporting companies created or registered on or after January 1, 2024, and before January 1, 2025, have 90 days to file their initial BOI reports,
  • Reporting companies created or registered on or after January 1, 2025, will have 30 days to file their initial BOI reports, and
  • Reporting companies are also required to file additional reports, generally within 30 days, if there is a change in ownership or owner's information.

I want to be sure that our clients understand that Brown, Ells & Company (BECO) will not be preparing BOI reports, nor can we assist clients with BOI reports, as this type of work is legal compliance reporting which BECO is not allowed to do. We are recommending that clients contact their attorney if they have questions, or need assistance with BOI reporting.

Also, here is a link to the U.S. Treasury, Financial Crimes Enforcement Network - frequently asked questions, regarding Beneficial Ownership Information reporting. www.fincen.gov/boi-faqs

Best regards,

Ken

Ken DeLucas, CPA
Brown, Ells & Company
17000 S Golden Rd
Golden, CO 80401
Phone 303-271-1234
Fax 720-263-5341

www.BrownEllsCompany.com