Source: Newburg and Company
ALERT: Beneficial ownership reporting requirements (BOI) are back in effect, with a new deadline of March 21, 2025 for most companies.
FinCEN Extends Beneficial Ownership Information Reporting Deadline
The Financial Crimes Enforcement Network (FinCEN) has announced a 30-day extension for most businesses required to report their Beneficial Ownership Information (BOI) under the Corporate Transparency Act (CTA). This extension follows a court decision that temporarily paused the reporting requirement but has now reinstated it.
New Reporting Deadlines
For most reporting companies, the new deadline to file initial, updated, or corrected BOI reports is now March 21, 2025. However, if your business has already been granted an extended deadline (such as for disaster relief), you should follow that later deadline instead.
Additionally, companies and individuals involved in the National Small Business United v. Yellen case, such as Isaac Winkles and members of the National Small Business Association as of March 1, 2024, are currently not required to report their BOI.
What’s Next? Potential Changes to the Reporting Rule
FinCEN has indicated that it intends to revise the BOI reporting rule to ease the compliance burden on lower-risk businesses, including many U.S. small businesses. The agency will also evaluate additional deadline modifications.
What This Means for Your Business
If your business is required to file a BOI report, this extension provides valuable extra time to ensure compliance. With FinCEN planning to revise reporting rules, staying informed about potential changes will be essential in the months ahead.
As a reminder, the BOI reporting requirement, effective January 1, 2024, is part of the Corporate Transparency Act (CTA) of 2021. This law mandates that most small businesses report their ownership information to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The CTA aims to strengthen anti-money laundering efforts and prevent activities like terrorist financing, corruption, and tax fraud.
Please be advised that your entity may have a filing obligation with the Federal Government. You may need to file a Beneficial Ownership Information Report (BOI Report) with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).
- EXEMPTIONS – There are 23 types of entities exempt from the BOI reporting requirements. These entities include publicly traded companies meeting specified requirements, many nonprofits, and certain “large operating”
- ***To qualify for the large operating company exemption, an entity must have more than 20 full-time employees in the United States, must have filed a Federal income tax or information return in the United States in the previous year demonstrating more than $5,000,000 in gross receipts or sales, and must have an operating presence at a physical office in the United States.
BOI Report Filing Process
To file the BOI Report, please login to https://www.fincen.gov/boi and follow the instructions. You will need to provide a copy of your license/passport.
BOI Demo Video: Five-Minute Demo: How to File a Beneficial Ownership Information (BOI) Report.
This video walks through how to report beneficial ownership information (BOI) using the Financial Crimes Enforcement Network (FinCEN)’s E-Filing System.
Stay abreast of the latest alerts on the https://www.fincen.gov/boi website.