FinCEN Delays BOI Reporting Penalties, Plans Deadline Extension

FinCEN recently announced it will not enforce penalties for missed Corporate Transparency Act beneficial ownership information (BOI) reporting deadlines until a new interim final rule is in place and those deadlines have passed. Implementation of BOI reporting, with its first filing deadline of January 1, 2025, has been the subject of litigation by small business groups challenging its constitutionality for several weeks. 

The Corporate Transparency Act was passed by Congress in 2021 as a bipartisan effort to prohibit the use of anonymous shell companies and help track illicit money transfers.    

An interim final rule extending such deadlines is expected by March 21, 2025.  FinCEN will seek public comment on potential revisions to BOI reporting with a proposed rulemaking later this year.