On July 8, 2024, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released new and updated Frequently Asked Questions (FAQs) that clarify FinCEN’s final rules regarding beneficial ownership information (BOI) reporting.
Two of the new FAQs (C.13. and C.14.) address the BOI requirements for reporting companies that cease to exist on or after January 1, 2024. Specifically, the FAQs make clear that a reporting company that does not meet an exemption from filing a BOI report and continues to exist for any period of time on or after January 1, 2024, is required to file a BOI report with FinCEN. BOI reports must be filed for both (1) nonexempt reporting companies that were created prior to January 1, 2024, and cease to exist before the applicable BOI reporting deadline of January 1, 2025, and (2) nonexempt reporting companies created on or after January 1, 2024, that cease to exist before the applicable reporting deadline for newly formed/registered entities (90 days for entities formed in 2024; 30 days for entities formed in 2025 and thereafter).
As part of their ongoing CTA analysis, clients should identify any reporting companies in their structures that were dissolved or otherwise ceased to exist on or after January 1, 2024, to ensure that any additional BOI reports required as a result of the information in FAQs C.13. and C.14. are filed in a timely manner.
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