Beneficial Ownership Reporting Requirements Reinstated
As we had previously noted, the U.S. District Court for the Eastern District of Texas had imposed a preliminary injunction against FinCEN from enforcing the beneficial ownership reporting requirements of the Corporate Transparency Act. On Dec. 23, 2024, the U.S. Court of Appeals – Fifth Circuit granted a stay pending appeal of this injunction. This means that the beneficial ownership reporting requirements have been reinstated.
FinCEN subsequently released guidance to reporting companies, which granted some relief to the reporting deadline because of the Court of Appeals decision. Companies formed before Jan. 1, 2024, have until Jan. 13, 2025, to file their initial reports. FinCEN has also granted other delays for reporting companies formed after Sept. 4, 2024, and companies that qualify for disaster relief.
Below are five important points to note:
- Companies created on or after Sept. 4, 2024, that had a filing deadline between Dec. 3, 2024, and Dec. 23, 2024, now have until Jan. 13, 2025, to file.
- Companies created on or after Dec. 3, 2024, and on or before Dec. 23, 2024, have an additional 21 days from their original filing deadline to file.
- Companies that qualify for disaster relief and have extended deadlines beyond Jan. 13, 2025, may still take advantage of these extended deadlines.
- Companies created on or after Jan. 1, 2025, will have 30 days to file after receiving actual or public notice that their creation is effective.
- 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 because of the decision in National Small Business United v. Yellen.
Next Steps
For further information, visit https://fincen.gov/boi and click on the Alert titled “Alert: Updates to Beneficial Ownership Information Reporting Deadlines – Beneficial Ownership Information Reporting Requirements Now in Effect, with Deadline Extensions” to open the full update compiled by FinCEN.
By Kevin Dunn, CPA, Director, Tax & Business Advisory Services and Tim Schlotterer, CPA, Director of Tax Services
Check out these other articles for more information and insight:
Reporting Beneficial Ownership Information Critical To Avoiding Hefty Penalties
New FinCEN Reporting Rules, Domestic and Foreign Entities To Report Beneficial Ownership
