Small businesses must file BOI report, FinCEN sets new deadline
A day after a federal court resurrected the Corporate Transparency Act and its beneficial ownership information reporting requirement, the federal government has set new deadlines and indicated it may change the rules.
According to a notice from the Financial Crimes Enforcement Network (FinCEN), the agency enforcing the Corporate Transparency Act, the new deadline to file a beneficial ownership information report for the vast majority of small businesses is March 21.
However, that deadline is subject to change. FinCEN noted that it will provide an update before March 21 of any further modification to the deadline. The agency is acknowledging that some companies may need additional time to comply.
Any company that has been given a beneficial ownership information reporting deadline later than March can continue to file by the later date. Companies that may have received an April deadline due to a disaster-relief extension, for example, should adhere to it rather than the March 21 deadline.
To file a beneficial ownership information report, go to BOIefiling.FinCEN.gov. More information can be found at FinCEN.gov/boi.
Some companies may get some relief. FinCEN said further deadline modifications will be considered during the 30 days before the deadline. The agency will look into prioritizing beneficial ownership information reporting for companies that pose the most significant national security risks.
FinCEN indicated it plans to start the process of revising the Corporate Transparency Act’s reporting rule. Revisions could reduce the burden for lower-risk entities.
OOIDA’s Compliance Department urges truckers who have to file a BOI report to watch out for websites and services that charge for filing the paperwork. There is no fee if you file directly at FinCEN.gov/boi.
The filing requirement is only for small businesses that employ fewer than 20 employees and are incorporated. For example, sole proprietorships and partnerships that are not incorporated do not need to file. More information about the report and the Corporate Transparency Act can be found here.
In addition to potential modifications before March 21, the beneficial ownership information reporting situation could change again soon after the deadline. Oral arguments in the Fifth Circuit Court of Appeals for one of the injunctions that stopped enforcement of the Corporate Transparency Act are scheduled for April 1. A decision in that case is expected soon after. However, the deadline to file a BOI report will have passed by then.
Relief from Congress
While the courts are making beneficial ownership information reporting as confusing as possible, two bills in Congress could give small-business owners much-needed certainty.
On Feb. 10, the House passed HR736, the Protect Small Business from Excessive Paperwork Act. The one-sentence bill simply postpones the beneficial ownership information reporting deadline for most companies to Jan. 1, 2026. Receiving bipartisan support, the bill is currently in the hands of a Senate committee.
Meanwhile, another bill would get rid of beneficial ownership information reporting requirements for good. In January, Sen. Tommy Tuberville, R-Ala., and Rep. Warren Davidson, R-Ohio, reintroduced the Repealing Big Brother Overreach Act, which attempts to eliminate the Corporate Transparency Act.
Unlike the Protect Small Business from Excessive Paperwork Act, the Repealing Big Brother Overreach Act does not have bipartisan support. Although both the House and Senate versions of the bill have drawn in a relatively large number of co-sponsors, all of them are Republicans. And while the bill to delay the beneficial ownership information deadline swiftly made it through one chamber of Congress, the bill to completely eliminate BOI reporting has been sitting in committee.
If you have any questions, or need for additional infromation, visit this website - United States Department of the Treasury Financial Crimes Enforcement Network | FinCEN.gov
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