What is the Corporate Transparency Act and who needs to report Beneficial Ownership Information to the FinCEN?

The Corporate Transparency Act (CTA) was passed in January 2021, with an effective date of January 1, 2024.  As such, there has been much recent mention of this new requirement for businesses to report Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of Treasury. This reporting requirement can be complicated, and if not done correctly, costly.  We encourage business owners to work with their legal advisors to address their reporting requirements. This article will cover the who, why, when, what, and how of this new requirement.

Who needs to comply with this requirement?  “Reporting companies” are generally businesses who have registered to do business with their secretary of state.  This can also include a foreign company that is registered to do business in the United States.  Such businesses may include Corporations, Limited Liability Companies (LLCs), or other legal entities.  If a business meets the criteria and does not qualify for an exemption they need to comply with the CTA and self-report the BOI.  There are several entities that are exempt from filing.  Details on the exemptions can be found on the FinCEN website via the Small Entity Compliance Guide.  FinCEN has estimated that nearly 33 million businesses will be required to comply with the CTA this year.

Why is this now a requirement? The primary reasoning is to make it harder for offenders to misuse US corporations and LLCs to benefit from or hide any unlawful activities using these business structures.  Collecting this data will allow for better monitoring, as well as provide standards for state incorporation practices, and allowing better ability to identify the beneficials owners of such entities.

When is a reporting company required to self-report their BOI?  If your company existed prior to January 1, 2024, you must self-report your BOI to FinCEN by January 1, 2025.

If your company is established on or after January 1, 2024, and before January 1, 2025, you have 90 calendar days to report your BOI from the formation date of your company.  If your company is established on January 1, 2025 or after, you have 30 days to report from the formation of your company.

There is also a requirement for all Reporting Companies to update their filing if there are any changes to any beneficial ownership data and/or reporting company data.  This must be updated within 30 days of such changes.

What information is required to be reported?  Information to be reported includes data on the “Reporting Company” as well as data on the beneficial owners.  Data for the company includes legal name, any trade or dba names, current street address of principal business, the jurisdiction it was formed or registered in, and its tax identification number.

The qualifications of who is a “Beneficial Owner” may be complex depending on the business structure.  Clarification on who is a beneficial owner can be found here.  Data required to be reported for the beneficial owners includes name, date of birth, residential address, identification number from an acceptable identification document, as well as images of such document.

How is the information to be reported?  The Beneficial Ownership Information reporting is done online at BOI E-Filing System.  There are multiple methods to submit the required information, as outlined on the website.

Do not ignore this reporting requirement.  There are stiff fines for failing to report this information.  One who willfully fails to report this information could be subject to civil penalties up to $500 per day.  They may also be subject to criminal penalties, including jail time and a fine up to $10,000.

Detailed information, FAQs, reference materials, and more can be found at https://www.fincen.gov/boi.

Business management and owners will likely need to spend significant time in 2024 to assess these requirements and self-report accordingly.  Snyder Cohn encourages you to start this process now and to work with your legal advisors for assistance.


By: Billy Litz and Suzanne Miller

Congratulations Keith and Billy!

Snyder Cohn, PC is pleased to announce that Keith Jennings and Billy Litz are now shareholders of the firm!

Keith’s passion lies in serving nonprofit organizations and he is the firm’s champion in this area, supporting Executive Directors and their financial teams by providing audit, tax, and consulting services that ensure the success of their worthwhile initiatives, while maintaining compliance and reducing risk. Keith is also the head of the firm’s Client Accounting Advisory Services Department, which is a growing team of QuickBooks Certified professionals who provide accounting, bookkeeping, and CFO advisory services to businesses and nonprofit organizations.

Keith joined Snyder Cohn in 2003 and became principal at the firm in 2019. Keith has been involved with many local and national charitable organizations including roles as a board member and treasurer, and has presented at conferences and events on various nonprofit accounting topics. Keith graduated from Bucknell University with a Bachelor of Science degree in Accounting and is a graduate of the Leadership Montgomery Emerging Leaders class of 2015. He is a certified public accountant licensed in Virginia and is a member of the American Institute of Certified Public Accountants and the Greater Washington Society of Certified Public Accountants.

Billy works closely with real estate investors and commercial and residential developers, assisting these high-net-worth individuals to preserve their wealth and ensure their families’ success for years to come. He enjoys meeting entrepreneurs and learning about their business operations and being a trusted advisor to his clients. Billy takes pride in offering tax strategies that make a large impact and loves helping his clients to solve problems in an ever-changing tax environment. His specialties include comprehensive tax planning, property acquisition due diligence analysis, as well as financial statement and high-level tax return preparation. As head of the firm’s Tax Department, Billy remains excited about the growth and development of Snyder Cohn associates.

Billy has been a valued member of Snyder Cohn since he joined the firm in 2006 and was named principal in 2020. He served in the US Air Force and holds a Bachelor of Science degree in Accounting from the University of Maryland and is a graduate of the Leadership Montgomery Emerging Leaders class of 2016. He is a certified public accountant licensed in Maryland and is a member of both the American Institute of Certified Public Accountants and the Greater Washington Society of Certified Public Accountants.



Promotions of 2024

We are proud to announce the promotions of six of our associates effective January 1, 2024!

We celebrate the hard work and professional growth exhibited by these individuals throughout their journey with us. Their dedication to our clients and core values is truly appreciated, and we look forward to their continued development and success.

These well-deserved promotions not only highlight their achievements but also reflect Snyder Cohn’s commitment to recognizing and nurturing talent within our firm. We value their contributions and are proud to have them as part of our team.