On February 27, 2025, FinCEN released a significant notice regarding the enforcement of Beneficial Ownership Information (BOI) filing under the Corporate Transparency Act (CTA). The agency indicated that it will not enforce fines, penalties, or enforcement against companies for failing to file or update BOI reports (BOIR) by current deadlines.
What This Means for Businesses
If your business qualifies for BOI reporting under Corporate Transparency Act, here are the important things you should know:
Missed deadlines for BOI filings will not have fines and penalties imposed on them—at least until now. FinCEN will release an interim final rule by March 21, 2025, pushing reporting deadlines. The enforcement pause gives businesses additional time to become aware of and adapt to reporting requirements.
Why Is FinCEN Extending BOI Deadlines?
The Corporate Transparency Act requires multiple small businesses and legal entities to disclose beneficial ownership information to FinCEN as a means to prevent money laundering, fraud, and other financial crimes. Compliance professionals, trade associations, and business owners have complained about:
•Lack of clarity on reporting requirements
•Obligations for BOI reporting being overcomplicated
•FinCEN having to release more guidance
Recognizing such difficulties, FinCEN has decided to delay enforcement until a new rule takes effect so that companies can have definitive guidance prior to imposition of penalties.
What Do Companies Do Next?
1. Stay Current with the New Interim Rule
FinCEN’s interim final rule is out on or around March 21, 2025. The rule will establish new filing deadlines for BOI reports. Meanwhile, companies should monitor FinCEN releases and prepare for compliance.
2. Understand BOI Reporting Requirements
While enforcement is suspended, BOI reporting will remain required once new deadlines are imposed. Businesses should take into account:
– Whether or not they are a “reporting company” under the CTA;
– Who their beneficial owners are; and
– What they must report.
3. Consult a Professional – Rincker Law, PLLC Can Assist!
BOI reporting requirements may be overwhelming, especially for small companies and legal entities that are not accustomed to regulatory filings. Rincker Law, PLLC can assist you with:
– Determining if your business is obligated to file a BOI report;
– Gathering the information necessary to comply;
– Filing your BOI report timely and accurately; and
– Staying up-to-date on FinCEN’s new rule releases.
FinCEN’s decision provides temporary relief for businesses concerned about BOI compliance deadlines. However, this doesn’t exempt the reporting requirement—it simply delays enforcement until more definitive guidance is provided. Companies have to make the most of this window to actualize their duties, gather needed information, and stay abreast of regulatory adjustments to make complete compliance easier once new timelines are established.
Need Help with BOI Compliance?
We can address your questions on how the Corporate Transparency Act will affect your business at Rincker Law, PLLC. Contact Rincker Law, PLLC (217) 531-2179 today for expert legal assistance with your BOI submission and compliance needs.