Breaking News: BOI Reporting is Back with a New Deadline
If your business thought it could take a breather from the Corporate Transparency Act (CTA) Beneficial Ownership Information (BOI) reporting requirements, think again.
A recent court decision on February 18, 2025, has reinstated the reporting rule, meaning businesses must now comply. However, there is some breathing room—FinCEN has extended the deadline to March 21, 2025 for most companies. But the story does not end there. FinCEN has also hinted at upcoming revisions that may change the game again.
What Happened? A Court Battle Over BOI Reporting
Earlier this year, a U.S. District Court (Smith, et al. v. U.S. Department of the Treasury, et al.) put the BOI reporting rules on hold. That decision temporarily halted enforcement of the CTA’s transparency requirements. However, the Treasury Department fought back, and as of February 18, 2025, the court’s order has been stayed.
What does this mean? BOI reporting is now mandatory again, and FinCEN is moving forward with enforcement.
Who Needs to File and By When?
FinCEN has extended the BOI reporting deadline by 30 days, giving most businesses until March 21, 2025, to file.
Here’s the breakdown:
- Existing companies (formed before February 20, 2025): Must report BOI by March 21, 2025.
- Newly formed companies (on or after February 20, 2025): Must file within 30 days of formation.
- Companies making changes (like new owners or address updates): Have 30 days from the change to submit an amended report.
Exception: Certain businesses involved in an ongoing lawsuit (National Small Business United v. Yellen) are exempt from filing at this time.
The Good News: FinCEN Plans to Ease Burdens
While the new deadline may cause some stress, there is a silver lining: FinCEN is considering easing the BOI reporting burden for lower-risk businesses, particularly small businesses.
Treasury has committed to:
- Evaluating further deadline extensions.
- Revising the BOI rule to make compliance easier for small businesses.
- Prioritizing enforcement against high-risk entities that pose national security threats.
This means small businesses may see a lighter regulatory load in the near future.
What’s Next?
- Act Now. Even with the extension, do not wait until the last minute—March 21 is closer than it seems.
- Stay Updated. FinCEN may revise the rule again, so watch for new announcements.
- File for Free. Use FinCEN’s E-Filing system.
Final Thoughts: Stay Compliant, Stay Informed
The Corporate Transparency Act’s BOI reporting rule is back, and while the government is working to fine-tune the process, businesses must comply—or risk penalties.
With a shifting regulatory landscape, the best approach is to stay ahead of deadlines, file early, and keep an eye on FinCEN’s updates.
What do you think about these new developments? Are the rules too burdensome for small businesses? Share your thoughts in the comments below.
