it’s more than that
Reporting does not end with the initial submission. Any changes to reporting information must be updated within 30 days. Changes in residence, new driver’s licenses, or name changes due to marriage or divorce all need to be reported.
Having a system in place to monitor changes in your BOI is important and can save you a lot of trouble (and money). Failure to report may result in severe penalties, including fines of up to $500 per day and criminal penalties of up to two years in prison and fines of up to $10,000.
Wait, there’s a lawsuit!
While these requirements are intended to catch bad actors, some see them as being particularly burdensome on small businesses. this national federation of small businesses (NSBU) sued the government, claiming the rules were too onerous. In March 2024, a judge ruled in their favor, but the relief was only available to the approximately 65,000 NSBU members involved in the lawsuit.
What does this mean to you?
For most real estate agents and brokers, a BOI report is still required. FinCEN stated, “Except for certain individuals and entities subject to court injunctions (as described below), reporting companies are still required to comply with the law and file beneficial ownership reports as required by FinCEN.”
Recent court cases highlight the changing legal landscape surrounding the CTA. However, erring on the side of caution and filing a report is still the best course of action. FinCEN has begun sending warning letters about the mandatory filing deadline to people who formed new business entities earlier this year, reminding them of the civil penalties of $500 per day and criminal penalties of up to two years in prison and fines of up to $10,000.
