Order to report beneficial ownership information lifted

There are still 28 million reports to be filed by January 1

RAPID CITY, SD / ACCESSWIRE / December 23, 2024 / On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit placed a “Stay” on the U.S. District Court’s recent order in the case Texas Top Cop Shop v. Garland et. al. case. This means that for 90% of all legal entities (LLCs, corporations, etc.) there is a January 1, 2025 due date for filing a FinCEN Beneficial Ownership Information Report.

As of December 1, FinCEN had received only 9.5 million of the 32.6 million required filings for entities in existence as of January 1, 2024, plus an additional 5 million filings annually for new entities. This means that only 25% of required entities have submitted their beneficial ownership information. Non-compliance carries severe penalties, including civil fines of up to $591 per day, criminal fines of up to $10,000 per report, and up to two years in prison. During the holidays, entrepreneurs and professionals are now confronted with an urgent deadline with a lot at stake.

Recommended steps to perform as soon as possible:

1. Obtain FinCEN IDs for Key Owners – If you have not yet obtained FinCEN IDs for key beneficial owners, especially those who own multiple entities, you may want to consider obtaining the obtain these IDs. Obtaining a FinCEN ID can streamline reporting and also increase privacy for owners.

2. Engagement Management – For professionals and consultants, it is imperative to have a well-defined engagement letter or other contract with your client that clearly defines the scope of your work and your responsibilities.

3. Obtain and document key entity information –The designation of an “Effective Owner” includes persons with direct or indirect ownership or control of more than 25% of an entity, as well as certain other persons with substantial control over the entity. Before filing, you must have a complete file documenting the company’s ownership and control, including organizational charts, legal documents, and ownership tables.

4. Consider key complexities – When filing your BOIR, be sure to consider additional important complexities, including:

5. Obtain beneficial ownership information – Each report shall include the FinCEN ID number for each beneficial owner or the following information:

• Full legal name

• Date of birth

• Residential address

• A unique identification number from an acceptable identification document (e.g. passport, driver’s license)

• An image of the identification document

6. Submit the BOIR – You have two primary options for filing a FinCEN Beneficial Ownership Information Report:

• Submit directly to FinCEN

• File with a third party software vendor such as Secure compliance. Benefits can include:

7. Monitor for developments – Additional developments are expected in the coming weeks, including FinCEN guidance and possible legislative changes by a new Congress next year. However, given the timing, potential future changes cannot be relied upon and it is imperative to comply with the rules as currently in force.

Immediate action is imperative for business owners and professionals to ensure compliance with this impending expiration date of January 1, 2026!

“As this looming high-stakes deadline for BOI reporting approaches, the ability to submit bulk files and collect and manage information with cutting-edge technology is critical for companies and professionals facing tight time constraints.,” says Paul Freidel, CEO of Secure Compliance. “Our platform simplifies mass filings, improves data security, and provides the necessary support to meet compliance requirements on time. We want to help companies avoid fines and achieve peace of mind with their BOI reporting.“

For more information please visit www.securecompliance.us or contact:

Stacy Kuxhausen
info@securecompliance.us
(605) 646-3531

Contact details

SOURCE: Secure compliance

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