Beginning January 1, 2024, a significant number of businesses are required to comply with the Corporate Transparency Act (CTA). The CTA requires the disclosure of the beneficial ownership information (otherwise known as “BOI”) of certain entities from people who own or control a company.

There has been a flurry of activity the past few months on this requirement, and the due date for reporting.

On February 18, 2025, a federal district court lifted the last remaining nationwide injunction that halted the BOI reporting. FinCEN has now extended the filing deadline for initial, updated, and/or corrected BOI reports to March 21, 2025.

FinCEN will use these 30 days to “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 also said it would provide an update “of any further modification of this deadline, recognizing that reporting companies may need additional time to comply with their BOI reporting obligations once this update is provided.”

Below is a link to the Financial Crimes Enforcement Network’s guidance on this reporting requirement, as well as the latest information on the updated deadlines.

Small Business Resources | FinCEN.gov

The intent of the BOI reporting requirement is to help US law enforcement combat money laundering, the financing of terrorism and other illicit activity. The CTA is not a part of the tax code. Instead, it is a part of the Bank Secrecy Act, a set of federal laws that require record-keeping and report filing on certain types of financial transactions. Under the CTA, BOI reports will not be filed with the IRS, but with the Financial Crimes Enforcement Network (FinCEN), another agency of the Department of Treasury.

The information to be reported arises from determinations that are primarily legal in nature. As WebsterRogers is not engaged in the practice of law, we are not able to assist in preparing or submitting this report. We encourage you to consult with your legal counsel as to how to comply with these filing requirements and the timing of them. If you do not have legal counsel, there are various service providers offering assistance with BOI reporting. Please call your contact at WebsterRogers if you would like more information.