Beware of the BOI/CTA scam

The hot topic for business owners and real estate investors right now is the Corporate Transparency Act (CTA), which is also known as BOI (beneficial owner information).

This is a new filing that is going to be required starting 1/1/2024. It is NOT filed with the IRS. It is filed directly with the Department of Treasury through a special link.

The rules are still confusing. But there is one thing they’re clear about. Penalties can be big if you mess up!

To summarize the key points:

1. Filing Deadline:

   • If you have a business entity or trust formed before 1/1/2024, you have one year to file.

   • If you form a business entity or trust on 1/1/2024 or later, you have 30 days to file.

2. Penalties:

   • Penalties can be significant for non-compliance, so it's crucial to meet the filing deadlines.

3. Information Required:

   • The filing will require information about the beneficial owners of the entities.

4. Changes in Information:

   • If there are any changes in the information about the beneficial owners after filing, there is a 30-day window to update the details.

5. Legal Counsel:

   • It is advised to consult with legal counsel for assistance in preparing and filing the required information.

6. Scam Warning:

   • Be cautious of scam emails promising help with filings. The Department of Treasury has issued a warning, emphasizing the importance of using reputable companies or attorneys.

We will NOT be preparing those as part of our Services. Why? Our professional liability company won’t cover us and has advised us that clients should talk to their legal council about the filing.

The Dept of Treasury has sent out a warning about scam emails that promise to help you with filings. Make sure the company you get to help you is reputable. It is recommended you use an attorney.