Updates on Beneficial Ownership Information (BOI) Reporting
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The Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a release announcing that it intends to issue an interim final rule by March 21, 2025 that will extend the current deadlines to file or update beneficial ownership information (BOI) reports pursuant to the Corporate Transparency Act (CTA). Accordingly, FinCEN indicated that no fines or penalties will be issued, and no enforcement actions will be taken, until the forthcoming interim final rule becomes effective and the new due dates in the interim final rule have been published.
In light of this announcement from FinCEN, reporting companies need not file their beneficial ownership information with FinCEN until the new, still to be determined, deadlines. This applies to initial reports, updated reports and corrected reports.
Additionally, FinCEN announced that it will be issuing proposed rulemaking that will narrow the scope of the rule to foreign reporting firms only. It said that it is taking this approach in the interest of supporting hard-working American taxpayers and small businesses as well as ensuring that the rule is appropriately tailored to advance the public interest.
Prior to this, FinCEN stated that the BOI reporting requirements under the CTA were back in effect given the Feb. 18 ruling of the U.S. District Court for the Eastern District of Texas in Smith v. U.S. Department of Treasury. However, FinCEN then acknowledged that reporting firms might need extra time to comply with their BOI reporting obligations. Subsequently, it announced that it was generally extending the deadline to March 21.
Now FinCEN has stated that no fines or penalties will be issued, and no enforcement actions will be taken, until a forthcoming interim final rule becomes effective and the new relevant due dates in the interim final rule have passed.
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