What it is
Under the Corporate Transparency Act, covered companies report their beneficial owners — the humans with 25%+ ownership or substantial control — to FinCEN, the Treasury's financial-crimes unit. It's a transparency filing, separate from anything the IRS sees.
Who's covered
Applicability rules have shifted through litigation and rulemaking — notably narrowing for US-formed entities while keeping foreign-formed companies registered in the US in scope. Because the rules have moved, verify current applicability for your entity before assuming either way.
Why care
Willful non-compliance carries civil and criminal penalties. The filing itself is short — knowing whether and when it applies to you is the whole game.
Related reading
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