FinCEN Update: Beneficial Ownership Information Reporting Deadlines
In a major update for businesses, the Financial Crimes Enforcement Network (FinCEN) has announced extensions to the deadlines for filing Beneficial Ownership Information (BOI) reports. This decision follows a December 23, 2024, U.S. Court of Appeals ruling, which reinstated the reporting requirements under the Corporate Transparency Act (CTA). The adjustments aim to provide businesses sufficient time to comply following a prior injunction that temporarily halted enforcement.
Here’s what you need to know about the updated deadlines and compliance requirements:
New BOI Reporting Deadlines
- For Companies Registered Before January 1, 2024
Reporting companies created or registered prior to January 1, 2024, now have until January 13, 2025, to file their initial BOI reports. This replaces the original deadline of January 1, 2025. - For Companies Registered Between September 4, 2024, and December 23, 2024
Companies that had original deadlines between December 3, 2024, and December 23, 2024, also have until January 13, 2025, to file their reports. - For Companies Registered Between December 3, 2024, and December 23, 2024
These companies are granted an additional 21 days from their original filing deadlines to submit their initial BOI reports. - For Companies Qualifying for Disaster Relief
Companies that qualify for disaster relief may have deadlines that extend beyond January 13, 2025. Businesses should adhere to whichever deadline is later. - For Companies Registered on or After January 1, 2025
Companies created or registered after January 1, 2025, must file their BOI reports within 30 days of receiving actual or public notice of their registration. - Exempt Entities
Businesses associated with the case National Small Business United v. Yellen are temporarily exempt from filing BOI reports. This exemption includes companies owned by Isaac Winkles or members of the National Small Business Association as of March 1, 2024.
Legal Background
The updated deadlines stem from recent court rulings surrounding the CTA. On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction, temporarily halting the enforcement of BOI reporting requirements. However, the U.S. Court of Appeals for the Fifth Circuit stayed that injunction on December 23, 2024, reinstating the CTA’s reporting obligations.
The Department of the Treasury maintains that the CTA is constitutional, as supported by rulings from district courts in Virginia and Oregon. Pending further appeals, FinCEN is moving forward with implementing BOI reporting requirements to enhance transparency and prevent financial crimes.
How to Ensure Compliance
Given the adjusted deadlines, it is crucial for businesses to understand their specific reporting obligations and timelines. Companies should verify their registration dates, assess their eligibility for disaster relief extensions, and prepare the necessary BOI documentation.
Need Help?
Navigating BOI reporting requirements can be complex, but you don’t have to do it alone. For businesses unsure about their obligations or deadlines, consulting compliance experts like API Processing can help streamline the process and ensure timely filing. Stay proactive to avoid potential penalties and ensure compliance with FinCEN’s requirements.
Stay updated on FinCEN announcements and resources to keep your business ahead of any future changes. Click here for assistance with BOI reporting for your contractor business.