Addendum: Update on Beneficial Ownership Information (BOI) Reporting Deadline
Addendum: Update on Beneficial Ownership Information (BOI) Reporting Deadline
As of February 19, 2025, the Financial Crimes Enforcement Network (FinCEN) has reinstated the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA). This follows a federal court decision lifting a previous injunction that had temporarily halted enforcement. Consequently, the new deadline for most reporting companies to submit their BOI reports is now March 21, 2025.
The CTA mandates that corporations, limited liability companies, and other similar entities disclose their beneficial owners to FinCEN. This legislation aims to combat the use of anonymous shell companies and illicit financial activities. It is estimated that approximately 32 million small businesses across the United States are affected by this requirement.
FinCEN has acknowledged the challenges businesses may face in meeting this obligation and has extended the filing deadline to March 21, 2025, to provide additional time for compliance. During this period, FinCEN will assess options to further modify deadlines and intends to initiate a process to revise the BOI reporting rule, aiming to reduce the burden for lower-risk entities, including many U.S. small businesses.
It is crucial for businesses subject to the CTA to prepare and submit their BOI reports by the March 21 deadline to ensure compliance and avoid potential penalties. For detailed information on reporting requirements and to access the BOI E-Filing System, visit FinCEN’s official website.
Please note that ongoing legal challenges and potential legislative changes may impact these requirements. Businesses are advised to stay informed on the latest developments regarding the CTA and BOI reporting obligations.
Source: https://www.wsj.com/articles/the-corporate-transparency-act-is-back-on-7a186401
