With the recent 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., the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) are back in effect. This means that many businesses must comply with reporting obligations to the Financial Crimes Enforcement Network (FinCEN) regarding their ownership structures.
Extended Deadline for Compliance
Recognizing that reporting companies may need additional time to fulfill their BOI reporting obligations, FinCEN has generally extended the deadline by 30 calendar days from February 19, 2025. For most reporting companies, the new deadline to file an initial, updated, or corrected BOI report is March 21, 2025. However, businesses that were already granted a later reporting deadline—such as those qualifying for disaster relief extensions due to recent hurricanes—should adhere to their original, later deadlines instead.
FinCEN’s Plan to Reduce Regulatory Burden
To ease the burden on small businesses and other lower-risk entities, FinCEN has announced its intention to revise the BOI reporting rule later this year. During the 30-day extension period, FinCEN will evaluate additional options to further modify deadlines, prioritizing entities that pose the greatest national security risks.
What This Means for Your Business
If your company qualifies as a reporting company under the CTA, it is crucial to ensure compliance with the BOI reporting requirements. Failing to file on time could result in penalties. If you’re unsure whether your business must file a BOI report, or if you need assistance with compliance, seeking guidance from a legal professional can help avoid costly mistakes.
At Windrose Law Center, we assist business owners in navigating complex legal requirements, including BOI reporting. If you have questions or need assistance with your filing, contact us today to ensure you remain in compliance with these important regulations.
Stay informed—FinCEN is expected to provide updates before March 21, 2025, regarding any further deadline modifications. Check back regularly for the latest developments!