The deadline for filing the Beneficial Ownership Requirement form is quickly approaching for small business owners. 

Courtney Kincaid, the President and CEO of the Indiana CPA Society, says the deadline to file for many businesses is December 31. You need to file the form if you own a business or are part of a business.

The new requirement is part of the Corporate Transparency Act and aims to stop money laundering and fraudulent activity. Kincaid says not filing could result in hefty penalties for business owners. She says penalties can be $500/day each day your report is late, up to $10,000. Some business owners may even face jail time for not filing the report on time.      

While the regulations are not entirely clear to all, Kincaid says, “It’s kind of a mixed bag at this point,” but business owners should play it safe and file on time. Kincaid says the Indiana CPA Society petitioned the government for a delay, but so far, no delay in implementation is in sight.     

In addition, any changes in ownership to your company must be reported with a new filing within 30 days. Kincaid says, “We think that’s a really tight window.”

Resources are available to help business owners learn more about filing a Beneficial Ownership Requirement form.