No BOI Filing Extension for Disaster Victims
Audio version available here (2 min.)
Victims of natural disasters like Hurricane Beryl in Texas and Hurricane Helene in the southeastern United States have only one guaranteed relief: tax filing extensions. Whenever the President authorizes federal disaster declarations for disaster victims, the IRS tends to automatically grant tax filing and/or payment relief for those areas. While this is tremendous help for those affected by these disasters, business owners are currently being left out to dry by FinCEN. That is, no extensions have been granted for BOI filing.
Under the Corporate Transparency Act, business owners are now required to file their beneficial ownership information to FinCEN. This extra compliance step is already a headache for many business owners. Add on that you may be preoccupied with rebuilding after a serious weather disaster when it is due, and it can become a nightmare. This is because filing your BOI report has a strict deadline, and even stricter consequences if you miss it.
If you started your business before 2024, you have until January 1st, 2025 to file your BOI report. But if you started your business in 2024, you only have 90 days to file. The consequence for missing your deadline is a $591 penalty—every day you do not file the report. This penalty is why many feel it is not fair that FinCEN refuses to follow the IRS’s example and offer deadline extensions in times of extreme hardship.
There have been efforts to convince FinCEN to correct its inaction. Organizations like the American Institute of Certified Public Accountants have sent letters to FinCEN insisting that it should “adopt a policy providing automatic filing extensions to… match the extensions that the IRS provides”.
Whether or not FinCEN will actually grant extensions for BOI filing is yet to be seen, but it’d be safest to assume no change will be made. We are only a couple months away from the January 1st, 2025 deadline for businesses who were created prior to 2024. And if your business started in 2024, remember that you also have limited time to file. It’d be best to get your BOI report out of the way now, so if you’re ready to be in compliance, reach out to XQ CPA for assistance. We’ll make sure your BOI report is filed correctly and on time. Give us a call or schedule a consultation online.
Phone: 832-295-3353
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