Understanding Beneficial Owner Information Reporting (BOIR)
As 2024 progresses, a new compliance requirement has emerged for many businesses and organizations: the Beneficial Owner Information Reporting (BOIR). This is the first year that entities are required to submit this report, with a due date of December 31, 2024. If you’re unfamiliar with BOIR, or unsure about whether it applies to your organization, this guide will help you navigate the essentials.
What is Beneficial Owner Information Reporting (BOIR)?
The BOIR is a new compliance obligation designed to enhance transparency in the ownership of businesses and organizations. The aim is to prevent illegal activities such as money laundering and fraud by ensuring that the true owners and controllers of entities are disclosed to regulatory authorities.
Who Needs to File?
The BOIR requirement applies to most entities, including corporations, LLCs, and other similar structures, with some exceptions for larger, regulated entities and publicly traded companies. If your organization falls into one of the following categories, you will likely need to file:
Corporations and LLCs: Most privately held entities are required to file unless they meet specific exemptions.
Non-Profits: While some non-profits are exempt, it’s crucial to verify if your organization meets the criteria.
Foreign Entities: If your organization is foreign but operates in the U.S. or has registered in a U.S. jurisdiction, you may also be required to report.
What Information is Required?
The BOIR filing requires detailed information about the entity’s beneficial owners. A beneficial owner is any individual who directly or indirectly owns or controls 25% or more of the entity or exercises significant influence over the management and policies of the organization. The required information typically includes:
Full Name
Date of Birth
Residential Address
Identification Numbers (e.g., Social Security Number or Passport Number)
Percentage of Ownership or Nature of Control
Why is This Important?
Non-compliance with the BOIR requirements can result in significant penalties, including hefty fines. The information collected helps the government maintain a clear record of who is behind various entities, supporting efforts to combat financial crimes and protect the integrity of the financial system.
How to File?
The filing process may seem daunting, but it doesn’t have to be. Here’s a simple step-by-step approach:
Identify Beneficial Owners: Determine who in your organization qualifies as a beneficial owner based on the 25% ownership or control criteria.
Gather Required Information: Collect the necessary details for each beneficial owner, including identification documents.
Complete the Filing Form: Use the designated online platform or paper form to submit your BOIR. Be sure to double-check all entries for accuracy.
Submit Before the Deadline: The deadline is December 31, 2024. Ensure your filing is submitted on time to avoid penalties.
Need Help?
To assist you with this process, I’ve created a comprehensive “How-To” video that walks you through each step of the filing. This resource is designed to make the BOIR submission as straightforward as possible. Don’t wait until the last minute—start preparing now to ensure your organization stays compliant.
Final Thoughts
The introduction of Beneficial Owner Information Reporting is a significant step towards greater transparency and accountability. While the process may seem overwhelming at first, understanding the requirements and taking proactive steps will ensure that you meet the compliance deadline without any issues.
If you have any questions or need further assistance, feel free to reach out. Let’s work together to make this first year of BOIR a success for your organization!
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