Feb. 25 Update: Corporate Transparency Act Enforcement
On Feb. 27, FinCEN announced that it would not issue fines or penalties or take any other enforcement actions against any company for not filing BOI reports by the current deadline. FinCEN has indicated they are evaluating issuing interim rules, possibly modifying the applicability of the reporting requirements for certain types of businesses, and possibly modifying the current filing deadline. Naturally, FinCEN should issue updated guidance before the March 21st deadline.
GBQ will continue to monitor the situation and communicate updates as they occur.
Court Makes Its Final Decision
The U.S. District Court for the Eastern District of Texas reached its final decision on Feb. 18, 2025, regarding beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA). In the case Smith, et al. v. U.S. Department of the Treasury, et al., the court ruled in favor of the government and ordered that the preliminary injunction be lifted. This means that businesses are once again required to report BOI to the Financial Crimes Enforcement Network (FinCEN).
Updated BOI Deadline
As a result of the ongoing litigation of the past several months, FinCEN will extend the deadline by 30 days from the date of the court’s decision. However, most companies will actually have until March 21, 2025, to file an initial, updated, and/or corrected BOI report. According to FinCEN, some other companies may have an even later deadline depending on extensions that may have been granted as a result of being located in certain disaster locations.
During these 30 days, FinCEN intends to assess the reporting requirements for those companies that are considered lower-risk entities and also may further modify the reporting deadline.
Next Steps
To file your BOI with FinCEN, click here to visit the e-filing system. Additional insight and information to help you during the filing process can be found here.
GBQ will continue to monitor developments related to BOI reporting requirements. If you have any questions about these new reporting rules and how they affect your business, GBQ is happy to discuss them with you. However, be advised that GBQ can not file your BOI report on your behalf. FinCEN also has a Small Entity Compliance Guide and frequently asked questions to help guide businesses through the reporting requirement, available at https://www.fincen.gov/boi/small-business-resources.
By: Kevin Dunn, CPA, Director, Tax & Business Advisory Services & Tyler Gabalski, CPA, Manager, Tax & Business Advisory Services
For additional insight, check out these resources:
Reporting Beneficial Ownership Information Critical To Avoiding Hefty Penalties
Strategies For Enhanced Forecasting
Improving Financial Application Security: Key Trends And Recommendations
