FinCEN Extends BOI Reporting Deadline & Prepares for Rule Revisions Amid Legal Developments

Key Takeaways

• Deadline Extension: FinCEN has extended the deadline for beneficial ownership information (BOI) reporting by 30 days, with a new deadline set for March 21, 2025.
• Reporting Rule Revisions: FinCEN plans to revise the BOI reporting rule in 2025, focusing on reducing compliance burdens for smaller and lower-risk entities.
• No Fines or Penalties for Delays: No penalties or fines will be issued for companies that miss the current deadlines, as enforcement actions will not begin until the interim final rule is in effect.

Deep Dive

For businesses still working through the new requirements for beneficial ownership information reporting, FinCEN has some good news. The agency announced last week that it’s extending the deadline to file reports by 30 days, pushing the final date to March 21, 2025. This comes after a recent court ruling that revived the reporting requirements of the Corporate Transparency Act.

While the court’s decision brought the rules back into effect, FinCEN recognizes that businesses, especially smaller ones, may need a little more time to catch up. To ease the burden, the agency is offering this extra time and has also made it clear that no penalties or fines will be issued for missed deadlines until a new interim rule is in place.

If your company is required to submit beneficial ownership information, you now have until March 21, 2025 to do so. This applies to most companies, but if your reporting deadline had already been set later—thanks to disaster relief extensions or other factors—you’ll still need to follow your original deadline.

For some businesses, like those covered in the National Small Business United v. Yellen case, reporting isn’t required just yet. If you’re in this group, you can breathe easy for now, but keep an eye out for any updates.

The good news for everyone is that filing your BOI is simple and free through FinCEN’s E-Filing system at https://boiefiling.fincen.gov.

What’s Next for the Reporting Rules?

FinCEN isn’t just extending deadlines, it’s also planning some important changes to make the process easier for small businesses. Later this year, FinCEN will revise the reporting rules to reduce the burden on lower-risk entities. These updates will come with an opportunity for businesses to provide feedback, ensuring that the new rules balance the need for transparency with the challenges businesses face.

FinCEN’s goal is to make sure that the beneficial ownership information it collects serves law enforcement and national security interests, but it also wants to make compliance as manageable as possible for businesses.

For now, businesses have a little more breathing room to get their reports in order. While the March 21, 2025 deadline is fast approaching, FinCEN’s decision to delay penalties gives companies time to file without the pressure of facing fines. It’s a sign that the agency is focused on ensuring compliance without creating unnecessary obstacles for businesses.

Treasury’s Commitment to Reducing Burden on Businesses

This announcement aligns with the U.S. Department of the Treasury's ongoing efforts to reduce the regulatory burden on businesses. As FinCEN stated, the extension reflects a commitment to prioritizing the reporting of BOI for those entities that pose the most significant risks to national security and law enforcement. At the same time, the agency is making it clear that businesses, especially smaller ones, will not face penalties while they adjust to the regulatory landscape.

The Treasury's approach continues to focus on making compliance manageable for businesses while ensuring that the beneficial ownership information collected serves critical national security and law enforcement functions.

As FinCEN works on the interim final rule and begins revising its reporting requirements, businesses should stay informed and make sure they’re ready to comply when the changes roll out. It’s a process that will continue to evolve, but for now, companies can take comfort in knowing that they’ve got some extra time to meet their reporting obligations.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.