The Financial Crimes Enforcement Network (FinCEN) has announced an extension of the deadline for filing Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act (CTA). While the implementation of these requirements back in effect may be a stressful matter for some, FinCEN is offering businesses a bit of good news. Any businesses needing further guidance in compliance with these requirements should contact MNK Law at 562.362.6437, or info@mnklawyers.com.
New Reporting Deadline
Companies now have to submit their BOI reports by March 21, 2025. This extension was given specifically to provide a bit of extra relief to businesses, some of which might need more time to comply with the newly reinstated regulatory requirements.
The Treasury’s Commitment to Reducing Regulatory Burden
The extension aligns with the Department of the Treasury’s ongoing commitment to reducing the regulatory burden on businesses. During the extended 30-day period, FinCEN plans to assess its options for further modifications to the deadlines. Priority will be given to reporting by entities that pose the most significant national security risks, while still considering the impact on smaller businesses.
Additionally, FinCEN has announced that it intends to revise the BOI reporting rules later this year to reduce the burden on lower-risk entities, particularly many small businesses in the U.S. This indicates a shift in policy aimed at easing compliance for companies that do not pose high national security risks but still fall under the CTA’s broader reporting mandates.
How to Report Beneficial Ownership Information
For those businesses that are required to report their beneficial ownership, FinCEN provides an easy-to-use E-Filing system for direct submissions at no cost. Companies can file their BOI reports through this online portal, which is available at https://boiefiling.fincen.gov. FinCEN has also made available additional information and guidance on the reporting process at their website, fincen.gov/boi.
Exemptions and Special Considerations
It is also important to note that certain reporting companies may be exempt from the BOI requirements. Certain companies are not currently required to report their beneficial ownership information, including companies that are members of the National Small Business Association, through their involvement in the case National Small Business United v. Yellen. These entities will not have to comply with the BOI reporting requirements at this time.
What This Means for Employers
Employers, especially those in small and medium-sized businesses, need to be prepared for the upcoming BOI reporting deadlines. While the extension provides additional time, it is essential for employers to assess their current compliance strategies and take necessary actions to ensure they meet the new March 21, 2025 deadline or their applicable deadline if it differs.
The extension provides some breathing room, but businesses must remain aware of potential future rule changes and the possibility of further extensions or revisions to the reporting requirements. Additionally, small businesses should stay informed about FinCEN’s intention to revise the rules to reduce the burden on lower-risk entities.
Since FinCEN stated that it will provide an update on any further deadline modification before March 21, 2025, clients should continue to gather information required for filing, but may want to hold off on making BOI report filing until after FinCEN provides such update.
Employers who are uncertain about their reporting obligations or who need assistance with the BOI reporting process should consult with legal professionals at MNK Law at 562.362.6437, or by e-mail at info@mnklawyers.com, to ensure they remain in compliance and avoid potential penalties.
