As Jan. 1 Deadline Nears for Beneficial Ownership Information Reporting, Beware of Scams

A Jan. 1, 2025, reporting requirement deadline under the Corporate Transparency Act that could affect many NAHB members is rapidly approaching. If you create or have created a corporation, limited liability company (LLC) or other similar entity by filing a document with a Secretary of State or similar office, you may be required to file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN.)

You are subject to this beneficial ownership reporting if your company has 20 or fewer employees and did not file a federal income tax return reflecting more than $5 million in gross sales or receipts in the previous year.

If you have not already done so, NAHB strongly recommends you determine whether your company is required to file a beneficial owner report. If you are required to file a report, we encourage you to begin collecting the information needed to make the submission.

There is no fee to file beneficial ownership information directly with FinCEN.

Reporting companies created before Jan. 1, 2024, must file their initial beneficial owner report no later than Dec. 31, 2024. If your company was created between Jan. 1, 2024, and Dec. 31, 2024, your initial report is due within 90 calendar days of the date the entity is formed. Companies created on or after Jan. 1, 2025, will have 30 calendar days from their formation to file their reports.

Scam Alerts

Please be aware that FinCEN has issued alerts warning individuals and businesses about fraud scams targeting entities that may be subject to the beneficial ownership information reporting requirements.

Red flags include a request for a fee for filing beneficial ownership information, receipt of an email or letter asking you to click on a URL or to scan a QR code, receipt of correspondence that references a Form 4022 or Form 5102 (FinCEN has no such forms), or receipt of correspondence that references the U.S. Business Regulations Dept. (There is no such U.S. government entity.)

You can find additional guidance and materials at fincen.gov/boi, or search for beneficial ownership information on nahb.org.

For more information on the fraud alerts, click these links:

• FinCEN Issues Alert on Fraud Schemes Involving Deepfake Media Targeting Financial Institutions (fincen.gov)
• FinCEN Beneficial Ownership Information (fincen.gov/boi)