BENEFICIAL OWNERSHIP INTEREST REPORTING
Updated December 19, 2024
GEORGE WILSON ADAMS CPA MBA
IMPORTANT UPDATE: On December 4, 2024 a federal District Court in Texas issued a nationwide injunction suspending all BOI reporting. Pending further judicial action companies are NOT required to file BOI reports.
BIG GOVERNMENT IS WATCHING YOU
Heads Up Business Owners!
If you own a business entity, it is extremely important that you read and understand this brief time-sensitive article.
In 2021, Congress passed the Corporate Transparency Act requiring many small business owners to report their ownership of a business to the US Treasury Dept. The obligation to file a Beneficial Ownership Interest ("BOI") report was created by people in Congress who want bigger and bigger government with more and more regulation of business. Astute readers will know which political party I'm referring to.
Anyone who owns an LLC, S corporation, C corporation and other types of entities may need to file a BOI report by January 1, 2025. Typical of so many other big government initiatives, this obligation is backed up with threats of substantial fines and jail time.
When To File a BOI Report
BOI reports for companies formed prior to 2024 must be filed on or before January 1, 2025.
How To File a BOI Report
You can file your own report by visiting the following government website:
https://boiefiling.fincen.gov/fileboir
If you prefer to hire someone to prepare a BOI report for you try any of these providers:
https://www.legalzoom.com/business/business-operations/beneficial-ownership- information-report.html
Legal Challenge To BOI Reporting
On March 1, 2024 the federal District Court for Alabama ruled that BOI reporting is unconstitutional, and an act of overreach by the federal government. This ruling applied to a small group of plaintiffs and most U.S. businesses are not covered by it. Unless further judicial action occurs, all business owners are advised to file BOI reports by the due date.
Beware of False and Misleading Information
Portions of the law and many internet sites discuss so-called exemptions from BOI reporting. I, for example, was briefly duped into believing that accounting firms were exempt from BOI reporting. The truth is that only a tiny number of very large accounting firms subject to government auditing standards may qualify for exemption. The overwhelming majority of accounting firms are very much subject to BOI reporting.
Many Banks Are Willing Stooges
Banks are active participants in the BOI reporting initiative, and may refuse to open a bank account, provide or refinance a loan, or may close a bank account for companies that do not issue BOI reports. Companies should expect to receive aggressive communications from banks and other financial institutions on this subject.
In this era of history, the entire banking industry should be viewed as a branch office of government. About two years ago the Biden-Harris regime attempted to force banks to spy on customer bank accounts by reporting annual total bank deposits to the IRS. This proposal was met with widespread resistance by an outraged public, as well as some credit unions and a few good banks.
The next battle for freedom and privacy in our financial affairs will be proposals for a national digital currency. Digital currency is merely another attempt to further expand big government, and further impair individual freedom and privacy. I strongly encourage all readers to monitor future developments on the subject of digital currency.
For a comprehensive discussion of the dangers and risks of a national digital currency see:
"A government is the most dangerous threat to man's rights: it holds a legal monopoly on the use of physical force against legally disarmed victims."
"America’s abundance was created not by public sacrifices to ‘the common good,’ but by the productive genius of free men.”
Ayn Rand
George Adams
Certified Public Accountant Master of Business Administration
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