12/10/2024

Treasury May Fine Small Businesses at least $10,000 if They Fail to File This New Report

About 32.6 million businesses are subject to the new BOI reporting

Small businesses and their owners could face penalties of $10,000 or more if they do not comply with a new U.S. Treasury Department reporting requirement by year's end — and evidence suggests many have not yet complied. However, tax-exempt entities are currently exempt from this filing.

The Corporate Transparency Act (CTA), passed in 2021, created the requirement. The law aims to curb illicit finance by asking many businesses operating in the U.S. to report beneficial ownership information to the Treasury’s Financial Crimes Enforcement Network (FinCEN).

Many businesses have a Jan. 1, 2025, deadline to submit an initial Beneficial Ownership Information Report.

Please select this link to read the complete article from CNBC.