BOIR stands for “Beneficial Ownership Information Reporting.” It is a regulatory requirement aimed at increasing transparency in financial transactions by identifying and reporting the beneficial owners of certain entities. This helps to combat money laundering, tax evasion, and other financial crimes.
Does my company have to report its beneficial owner(s)? Who are the beneficial owners of my company? What specific information does my company need to report?
Today we are going to provide an overview of what you need to know about filing a BOI report.
Beneficial Ownership Information Reporting
Beneficial ownership information encompasses the identifying details, such as names, of individuals who possess or oversee a business. Mandated by the Corporate Transparency Act (CTA) of 2021, reporting this information to the Financial Crimes Enforcement Network (FinCEN—a division of the U.S. Department of the Treasury—is required for most businesses. This measure aims to combat various illegal activities, including money laundering, terrorism financing, tax fraud, human trafficking, drug trafficking, counterfeiting, piracy, securities, and financial fraud, as well as acts of foreign corruption.
Who is a Beneficial Owner? What information should a reporting company report about a beneficial owner?
A beneficial owner is an individual who, either directly or indirectly:
(1) exercises substantial control (individual holds a senior officer position, has authority over officer appointments/removals or a majority of directors, and is a key decision-maker for the reporting company) over the reporting company, or
(2) owns or controls at least 25% of the reporting company’s ownership interests.
Who is a Company Applicant?
The term “company applicant” refers to either an individual or an entity tasked with submitting the necessary documents to establish or register a business with state authorities, Indian tribes, or other jurisdictions within the United States.
Suppose you have started a company in New York City on January 25, 2024. In this case, the company applicant would be the individual or organization submitting the required documents to the New York Department of State.
Is my company required to report its company applicants?
Not all companies are required to provide their company applicants to the FinCEN. Only the businesses established on or after January 1, 2024, are required to do so. Businesses formed before January 1, 2024, are exempt from disclosing their company applicant information.
File BOIR with Tax1099
With Tax1099, you can request your FinCEN ID for free and update or correct prior BOI reports. Easily store and access all prior filings for up to 3 years from one location.
- Manage thousands of reports effortlessly in a single dashboard.
- Reduce staff workload by automating the filing process.
- Maintain accuracy in BOIR and avoid hefty penalties.
Step 1: To file BOI reports, go to Tax1099’s dashboard, select BOI Reporting, and click on file BOI.
Step 2: Enter the reporting company, beneficial owner and company applicant details, filing information, beneficial owner
Step 3: Review summary of application and submit.
