We want to keep you informed about important updates regarding Beneficial Ownership Information (BOI) reporting requirements. The Financial Crimes Enforcement Network (FinCEN) has recently announced that most small businesses required to file BOI reports will now have until March 21, 2025, to do so.
Key Updates
- A federal district court lifted the last remaining nationwide injunction that had halted BOI filings.
- FinCEN has extended the deadline for initial, updated, and corrected BOI reports to March 21.
- Companies previously granted a later deadline due to special circumstances, such as disaster relief, should adhere to their original extension.
- FinCEN is reviewing further modifications to deadlines and plans to revise the BOI reporting rule to reduce the burden on lower-risk entities, including small businesses.
Background on BOI Reporting
The Corporate Transparency Act (CTA), passed in 2021 as an anti-money laundering initiative, requires certain entities to disclose information about their beneficial owners. If your business was formed after January 1, 2024, you must also disclose information about the “company applicants”—the individuals who filed the formation documents.
Failure to comply with BOI reporting requirements can result in significant penalties, including fines of $606 per day, up to $10,000, and potential criminal penalties of up to two years in prison for willful violations.
Next Steps
If your business is required to file a BOI report and has not yet done so, we strongly encourage you to complete your filing by the March 21 deadline. FinCEN may provide further updates, and we will continue to keep you informed of any changes that impact your reporting obligations.
If you have questions or aren’t sure if you are required to report, please contact our team. We’re here to help ensure your business remains compliant.
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