Beneficial Ownership Information Reporting has become mandated again. With the February 18, 2025, decision by the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.), Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA) are back in effect. However, recognizing that businesses may need additional time to comply, FinCEN is generally extending the deadline by 30 days from February 19, 2025, for most companies. This means you will have until March 21, 2025 to file.
BOI Reporting is Now Due
Entities formed on or before January 1, 2024: The initial deadline to file the Beneficial Ownership Information (BOI) report was January 1, 2025. However, due to recent legal developments, the Financial Crimes Enforcement Network (FinCEN) has extended this deadline by 30 days from February 19, 2025, making the new deadline March 21, 2025. Failure to comply may result in penalties.
What Should You Do Now?
- If you haven’t submitted your BOI report yet: The mandatory deadline is in effect and submission is required. To file your Beneficial Ownership Information Report, use this link.
- If you’ve already submitted your BOI report: No action is required, your submission is on record with FinCen.
Overview of Beneficial Ownership Information Reporting
- What is Beneficial Ownership Information?
Beneficial Ownership Information refers to details of individuals who directly or indirectly own or control at least 25% of a company. This reporting requirement aims to increase transparency and prevent financial crimes like money laundering and fraud.
- Why Do Companies Have to Report to the U.S. Department of the Treasury?
This requirement is part of a broader effort to combat financial crime by ensuring authorities can trace and investigate illicit activities. The goal is to enhance national security, protect financial integrity, and promote corporate transparency.
For a complete guide and FAQs on Beneficial Ownership Information Reporting, check out this list of FAQs. For businesses that are unsure about their filing obligations or need further clarification, it’s advisable to consult with legal or tax professionals to ensure compliance once the situation is resolved.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. While we are a CPA firm and can provide expert guidance on tax and financial matters, we recommend consulting a qualified attorney for legal advice specific to your business or situation.
