FinCEN has released updated FAQs regarding the beneficial ownership information (BOI) reporting requirements. While many of these new and updated FAQs do not provide any real new insights or only apply to a limited number of businesses, the following two welcome clarifications are included:
- Homeowners associations (HOAs) may or may not be reporting companies for BOI reporting purposes. HOAs are only reporting companies if they are created by filing a document with the Secretary of State or similar office. HOAs designated as an IRC §501(c)(4) social welfare organization are exempt from the reporting requirements, whereas HOAs not designated as an IRC §501(c)(4) social welfare organization must file a BOI report, unless otherwise exempt; and
- An organization created in 2024 that that is exempt from the BOI reporting requirements but loses its exemption prior to January 1, 2025, has until the later of the following dates to file its BOI report:
- January 1, 2025; or
- 30 calendar days from the date it loses its exemption.
Unfortunately, FinCEN did not answer one of the most commonly asked questions: “Is an entity created prior to 2024 that dissolves prior to January 1, 2025, required to file a report by January 1, 2025?” Spidell believes the answer is no, but we’ve been waiting for definitive guidance from FinCEN on this issue.
The updated FAQs are available at:
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