Latest News on Beneficial Ownership Information Reporting

This is one of a series of posts for tax clients to assist you stay up to speed on what is happening on Capitol Hill about tax concerns so you can prepare accordingly. Please contact this office if you have any queries.

In our last bulletin on beneficial ownership information (BOI), we reported that the Supreme Court granted a stay on a national order that had previously blocked the implementation of beneficial ownership information (BOI) reporting requirements for some corporations.

Despite the Supreme Court's ruling, reporting companies are not currently obligated to submit beneficial ownership information to FinCEN because of a separate nationwide order pertaining to a different case (Smith v. U.S. Department of the Treasury) that was issued by a different federal judge in Texas.

Nothing has changed in that regard; reporting is still on hold

However, in a notification issued by FinCEN on February 6, they explained their plan of action for when and if the present stay is removed.

• FinCEN intends to extend the reporting deadline for all reporting entities by 30 days from the day the stay is lifted.

• Furthermore, in accordance with the Treasury's commitment to reducing regulatory burdens on businesses, FinCEN will evaluate options to adjust future deadlines or reporting requirements for entities deemed lower risk, including many small businesses in the United States, while focusing reporting efforts on entities that pose significant national security threats.

We will offer an update if there are any additional developments regarding BOI reporting. Stay tuned!