Attorneys
UPDATE:
FinCEN issued an alert on February 19, 2025 including the following revised guidance:
Beneficial ownership information (BOI) reporting requirements under the Corporate Transparence Act (CTA) are once again back in effect. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply with their BOI reporting obligations, FinCEN is generally extending the deadline 30 calendar days from February 19, 2025, for most companies.
Notably, in keeping with Treasury’s commitment to reducing regulatory burden on businesses, during this 30-day period FinCEN will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks.
FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.
For the vast majority of reporting companies, the new deadline to file an initial, updated, and/or corrected BOI report is now March 21, 2025. FinCEN will provide an update before then of any further modification of this deadline, recognizing that reporting companies may need additional time to comply with their BOI reporting obligations once this update is provided.
Reporting companies that were previously given a reporting deadline later than the March 21, 2025 deadline must file their initial BOI report by that later deadline. For example, if a company’s reporting deadline is in April 2025 because it qualifies for certain disaster relief extensions, it should follow the April deadline, not the March deadline.
McBrayer attorneys are standing by and available to advise clients regarding these developments. Please contact us if you have any questions.
Previously posted on December 10, 2024:
On December 3, 2024, a Federal District Court in Texas held on a preliminary basis that the Corporate Transparency Act and the related regulations are unconstitutional. The Court issued a preliminary injunction precluding the government from continuing to process filings to FinCen of Beneficial Ownership Information for the moment. It was initially unclear how the government would respond but, on December 5, 2024, an appeal was filed to the 5th Circuit Court of Appeals.
As of December 9, 2024, an Alert was posted on the www.fincen.gov website stating that, “While this litigation is ongoing, FinCEN will comply with the order issued by the U.S. District Court for The Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information requests.”
