28 Million Reports Remaining To Be Filed by January 13th

RAPID CITY, SOUTH DAKOTA / ACCESSWIRE / December 23, 2024 / The following is an update on a Secure Compliance press release that went out 12/23 at 5:30 PM ET, due to an update by FinCEN's response to the "Stay" issued 12/23.

On December 23, 2024, the Fifth Circuit U.S. Court of Appeals put a "Stay" on the recent U.S. District Court injunction in the Texas Top Cop Shop v. Garland et. al. case. On top of it all, late in the day, FinCEN issued filing deadline relief until January 13, 2025 for most entities. This means that for 90% of all legal entities (LLCs, corporations, etc.), there is a January 13, 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 existing as of January 1, 2024, plus an additional 5 million filings expected annually for new entities. This means just 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 of imprisonment. Business owners and professionals now face an urgent, high-stakes deadline early in the new year.

Recommended Steps to Pursue ASAP:

1. Obtain FinCEN IDs for Key Owners - If you haven't already obtained FinCEN IDs for key beneficial owners, especially those that hold multiple entities, you may want to consider expediting obtaining these IDs. Obtaining a FinCEN ID can streamline reporting and also increase privacy for owners.

2. Engagement Management - For professionals and advisors, 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 a "Beneficial Owner" includes both persons with direct or indirect ownership or control of more than 25% of an entity, or certain other persons with substantial control over the entity. Prior to filing, you should have a complete file documenting ownership and control persons of the business, including organization charts, governing legal documents, and ownership tables.

4. Account for Key Complexities - Make sure to account for additional key complexities when filing your BOIR, including:

• Community property rules

• Tiered ownership structures

• Complex ownership structures (complex capital structures, waterfall equity calculations, etc.)

• Series LLCs

• Trusts

• Ownership that is unresponsive to data requests

• General Durable Power Of Attorney

5. Obtain Beneficial Owner Information - Included with each report will be either the FinCEN ID number for each Beneficial Owner, or the following information:

• Full Legal Name

• Date of Birth

• Residential Address

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

• An image of the identification document

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

• File directly with FinCEN

• File with a third-party software provider like Secure Compliance.
  Benefits can include:

  • Automated data collection

  • Date entry speed and ability to link single owners across multiple entities

  • Streamlined bulk uploads

  • Expert support

7. Monitor for Developments - Additional developments are expected in the weeks to come, including FinCEN guidance and possibly changes to the law by a new Congress next year. However, given timing, possible 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 imminent January 13, 2025, due date!

"As this imminent and high-stakes deadline for BOI reporting approaches, the ability to file in bulk and collect and manage information with advanced technology is critical for businesses and professionals facing tight time constraints," said Paul Freidel, CEO of Secure Compliance. "Our platform simplifies mass filings, enhances data security, and ensures the necessary support to meet compliance requirements on time. We are committed to helping businesses avoid penalties 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

SOURCE: Secure Compliance