FinCEN Pauses BOI Reporting Enforcement, Will Extend Deadline
Updated Feb. 28: On Feb. 27, FinCEN announced that it will not issue any fines or penalties or take any other enforcement actions against any companies based on any failure to file or update beneficial ownership information (BOI) reports by the current deadlines. 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 due dates in the interim final rule have passed. FinCEN stated that no later than March 21, 2025, it will issue the interim final rule that extends BOI reporting deadlines.
Feb. 19: The Financial Crimes Enforcement Network (FinCEN) recently announced that most entities required to file beneficial ownership information (BOI) reports under the Corporate Transparency Act (CTA) will have until March 21, 2025, to do so. The change comes after a federal district court lifted the last remaining nationwide injunction that had paused the BOI report filings.
On Feb. 18, the U.S. District Court for the Eastern District of Texas granted a Department of Justice (DOJ) request for a stay of the court's nationwide injunction in the case Samantha Smith and Robert Means v. U.S. Department of the Treasury. In response, FinCEN said it would extend the filing deadline for initial, updated and/or corrected BOI reports to March 21. Companies that were previously given a deadline later than March 21 may file their BOI report by the later date.
In its announcement, FinCEN also said that it would "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.” FinCEN additionally stated that it would provide an update of any further modification of the deadline.