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Treasury Department may fine small businesses $10,000 or more they don't file this new report

The U.S. Treasury Department has introduced a new rule requiring small businesses to file a Beneficial Ownership Information (BOI) report to combat financial crimes like money laundering and terrorism financing. This rule, part of the Corporate Transparency Act, mandates that small businesses, defined as those with fewer than 20 employees and annual gross receipts of $5 million or less, must report details about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Failure to comply with this reporting requirement could result in severe penalties, including fines of $500 per day, up to a maximum of $10,000, and potential jail time of up to two years. The rule aims to increase transparency and prevent the misuse of shell companies, but it places a significant compliance burden on small businesses, many of which might not be aware of this new obligation.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/other/treasury-department-may-fine-small-businesses-10-000-or-more-they-don-t-file-this-new-report/ar-AA1vx99U ]