Overview of BOI Reports and the CTA

Effective January 1, 2024, the CTA requires reporting companies (1120 and 1120-S companies, as well as certain self-employed individuals with Schedules C), both domestic and foreign, that do business in the United States to report beneficial ownership information (BOI) and company applicants to the Financial Crimes Enforcement Network (FinCEN). For reporting purposes, a beneficial owner is any individual who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise, exercises substantial control over the reporting company or owns or controls at least 25% of the ownership interests of the reporting company. Refer to 31 U.S.C. §5336(a)(3)(B) for a full list of exempted beneficial owners.

Businesses that exist or are registered prior to January 1, 2024, have until January 1, 2025, to file initial reports, whereas businesses created or registered on or after January 1, 2024, have 90 days after official registration or creation. Initial reports must contain:

• Identifying information on the reporting company:

• Legal name, trade name, and DBA

• Address of principal place of business

• Jurisdiction in which the business was formed or first registered

• Tax ID number

• Identifying information on beneficial owners and company applicants:

• Legal name

• Date of birth

• Current address

• State or federally recognized ID number (passport, driver’s license, etc.)

• Image of state or federally recognized ID

Updated reports must be filed when key information regarding the reporting entity or company applicant changes, or if there is a change in beneficial ownership (including changes to identifying information). Updates or corrections must be submitted within 30 days of the change.

In lieu of acceptable identification documentation, an individual or company may provide a unique identifier assigned by FinCEN (FinCEN Identifier). BOI reports must be filed with FinCEN. Refer to the FinCEN BOI FAQ page for additional information.

Helpful Features

Included in Tools > Blank Forms is a Beneficial Owner Information Reporting Data Entry Checklist to aid beneficial owners in gathering the information they need to complete their report. (Search BOIR.)

To help preparers track which taxpayers and entities have filed BOI reports, a Beneficial Owner Information section is included on screen MISC (Miscellaneous Codes/Notes). These fields are for reporting purposes only and, when completed, can be used to produce informational BOI reports via the Drake Tax Report Manager. See Drake Tax - Creating a Beneficial Ownership Information (BOI) Report for instructions.

The FinCEN BOI page can be directly accessed from federal screen FAQ.