The Corporate Transparency Act (CTA) went into effect January 1, 2024. One of the requirements is for all businesses to file a business ownership interest (BOI) report. We have previously discussed the requirements for filing the BOI report and provided a how to guide for filing the initial report.
The CTA provides 23 exemptions to filing. The “tax exempt entities” exemption from BOI reporting includes 3 types of tax exemption entities: (1) section 501c organizations; (2) section 527 political organizations; and (3) section 4947 trusts.
It is important to note that an entity which was formed as a nonprofit organization under state law, but has not received federal tax exemption status is not included in the BOI reporting exemptions. Additionally, if an exempt organization later loses its exempt status, the CTA requires such an entity to file its initial BOI report within 30 days of losing the exemption.
For more information about the exempt entities and other BOI related questions, find the BOI FAQs on the FINCEN website: https://www.fincen.gov/boi-faqs. And for more information about your specific entity, talk to your legal advisor.
The information contained in this post is for educational purposes only and should not be construed as legal advice. For specific legal matters, please consult with a qualified attorney.
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