Update – February 27, 2025: FinCEN announced it will not impose fines, penalties, or enforcement actions for failure to file or update BOI reports until an interim final rule takes effect. The final ruling, expected by March 21, 2025, will extend reporting deadlines and provide further guidance. In addition, FinCEN seeks public input on potential revisions to BOI reporting requirements as part of an effort to minimize burden placed on small businesses. 老葡京手机app will continue to monitor updates and provide further guidance as new information becomes available.
On February 18, 2025, the U.S. District Court for the Eastern District of Texas lifted the nationwide injunction in the Smith, et al. v. U.S. Department of The Treasury, et al. case and the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) are once again in effect for most reporting companies.
Financial Crimes Enforcement Network (FinCEN) then issued an alert, acknowledging that in light of the District Court’s decision, reporting companies, except those specifically named in the Alert, are once again required to file BOI reports with FinCEN.
New BOI Reporting Deadlines
Recognizing that businesses will need time to comply, the Department of the Treasury extended the BOI reporting deadline as follows:
- The majority of reporting companies must file an initial, updated, and/or corrected BOI report by March 21, 2025. However, an update of this deadline will be provided before the filing date if FinCEN recognizes reporting companies need more time.
- Companies that qualify for disaster relief may have extended deadlines that fall beyond March 21, 2025. These companies should abide by whichever deadline is later.
- Plaintiffs in National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.) — namely, Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024) — are not currently required to report their beneficial ownership information to FinCEN at this time.
FinCEN indicated it will provide further updates as needed before the March 21, 2025 deadline.
Potential Legislative Delay for BOI Reporting
A new bill, the Protect Small Business from Excessive Paperwork Act of 2025, seeks to delay the BOI deadline for some entities. This bill would only delay the BOI mandatory reporting requirement due date to January 1, 2026, for entities formed prior to January 1, 2024. The House unanimously passed this bill on February 10, 2025. This bill was introduced in the Senate on February 11, 2025, and was referred to the Senate Banking, Housing, and Urban Affairs Committee. As of the release of this update, there is no indication if this bill will pass and become law in time to affect the March 21, 2025 deadline.
What Should Businesses Do?
If you’re unsure whether your company is required to file or if you have questions regarding the legal implications of these recent court or legislative proceedings, we strongly encourage you to seek legal counsel with expertise in this area.
Whether you need clarity on compliance, help gathering information, or filing guidance, our team at 老葡京手机app is ready to assist. Contact us today to discuss how these changes may affect your business and develop a strategy that works for you.
