Updated 3/3/25
The US Treasury Department announced Sunday it will no longer enforce penalties against US citizens or domestic reporting companies under the Corporate Transparency Act (CTA), with Treasury Secretary Scott Bessent calling this “a victory for common sense.” This decision expands on FinCEN’s February 27 announcement that temporarily suspended enforcement until an interim final rule is issued by March 21, 2025. The Treasury also plans to narrow the scope of beneficial ownership information reporting to “foreign reporting companies only.” Meanwhile, legislative efforts continue with the House unanimously passing H.R. 736, which would delay implementation until January 2026, though its path through the Senate remains uncertain.
Updated 2/20/25
In a significant development for business compliance, FinCEN has announced a 30-day extension of the Beneficial Ownership Information (BOI) reporting deadline following recent legal proceedings. The decision comes after the U.S. District Court for the Eastern District of Texas lifted its stay on BOI reporting requirements on February 18, 2025. Under the new timeline, most reporting companies now have until March 21, 2025, to submit their initial, updated, or corrected BOI reports. This extension reflects Treasury’s understanding of businesses’ need for additional preparation time while maintaining regulatory oversight. Looking ahead, FinCEN plans to revise its BOI reporting rules to reduce the burden on lower-risk entities, particularly small U.S. businesses, demonstrating a balanced approach between national security interests and business practicality. Companies should note that those with previously established later deadlines or specific disaster relief extensions will retain their original reporting timeframes, and the free BOI reporting system remains accessible through FinCEN’s E-Filing platform.
In a significant development for business owners, the U.S. House of Representatives has unanimously passed legislation to extend the Beneficial Ownership Information (BOI) reporting deadline. This extension provides relief for the estimated 32 million small businesses affected by the Corporate Transparency Act (CTA).
The House voted 408-0 to pass H.R. 736, the “Protect Small Businesses From Excessive Paperwork Act of 2025,” which would extend the BOI filing deadline to January 1, 2026. This extension would apply to all reporting companies existing before January 1, 2024, while newer companies remain under their original reporting requirements.
Key Points:
- A companion bill has been introduced in the Senate by Banking Committee Chairman Tim Scott, signaling strong bipartisan support for the extension.
- The Financial Crimes Enforcement Network (FinCEN) continues to recommend voluntary filing despite ongoing legal challenges.
- Current legal proceedings may impact reporting requirements, as multiple court cases are still pending.
What This Means for You
If your business was in existence before January 1, 2024, this extension would give you additional time to prepare your BOI report. However, in a statement from the Financial Crimes Enforcement Network (FinCEN), which enforces BOI under the CTA, said: “Despite legislative and legal uncertainty, we continue to strongly recommend voluntary filing to get off this merry-go-round ride.”
HBK is not a law firm and cannot provide legal advice to clients. We encourage business owners to consult with their attorneys regarding their CTA reporting requirements.
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