On July 8, 2024, the Financial Crimes Enforcement Network (“FinCEN”) issued additional FAQs relating to the Corporate Transparency Act (the “CTA”). More specifically, FinCEN provided helpful guidance pertaining to the reporting requirements of companies created or registered on or after January 1, 2024 that later wind up their affairs and cease to exist before their initial beneficial ownership information (“BOI”) report is due to FinCEN.
As a reminder, reporting companies created or registered on or after January 1, 2024 must report their BOI to FinCEN within ninety (90) days of receiving actual or public notice that its creation or registration is effective. Reporting companies created or registered on or after January 1, 2025 must report their BOI to FinCEN within thirty (30) days of receiving such notice.
The FAQs clarify that the obligation to make the initial BOI report remains even if a reporting company winds up their affairs and ceases to exist as a legal entity before their initial BOI report is due. However, there is no obligation for the reporting company to file an additional report with FinCEN noting that the company has ceased to exist after the company files the initial BOI report.
KMK’s CTA team is continuing to monitor guidance issued on the CTA and will provide updates as necessary.
