Article Highlights:
- Federal District Court Lifts Final BOI Injunction
- FinCEN Extends Reporting Deadline for 30-days
- Current Status
- Pending Legislation
- Important Details to Consider
On February 18, 2025, the federal district court removed the final national injunction against beneficial ownership information (BOI) filing requirements.
On February 6, 2025, FinCEN published an advisory noting that if the district court's decision is stayed, enabling FinCEN's Reporting Rule to go back into force, FinCEN expects to extend the reporting deadline for all reporting firms by 30 days from the day the stay is granted. Furthermore, in accordance with Treasury's commitment to reducing the regulatory burden on businesses, FinCEN will consider options to modify additional deadlines or reporting requirements for lower-risk entities, including many US small businesses, while prioritizing reporting for those entities that pose the most significant national security risks.
FinCEN has not yet provided updated specific dates on its website.
The Current Status
For the time being, firms have until March 21, 2025 to file BOI reports, and no late filing penalties will apply if submitted by that date.
Certain organizations that were previously assigned a reporting date after March 21, such as those receiving disaster aid, are exempt. Specifically, persons impacted by Hurricanes Debby, Francine, Helene, and Milton have until April 23, 2025 to file their beneficial ownership information reports, according to FinCEN. Those harmed by Hurricane Beryl, who were first allowed an extension until February 6, 2025, must now meet the March 21 deadline.
Pending Legislation
The US House of Representatives enacted the Protect Small Businesses from Excessive Paperwork Act of 2025 (H.R. 736), which would postpone reporting obligations for organizations incorporated before January 1, 2024. Is now awaiting Senate action.
Key Changes
The Act establishes a timetable for enterprises that existed before to 2024 to submit their BOI reports. The original rule required enterprises to submit within two years after its effective date. However, under this revised law, any reporting entity founded or registered before to January 1, 2024 will have until January 1, 2026 to file their report to the Financial Crimes Enforcement Network (FinCEN).
Important Details to Consider
For organizations formed on or after January 1, 2024, the situation remains unknown. Companies incorporated in 2024 had a 90-day reporting window for 2024, while those founded in 2025 or after had a 30-day requirement. They must now await additional direction from FinCEN.
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