Beneficial Ownership Reporting Under the Corporate Transparency Act: Important Updates
FinCEN Extends Deadlines for Beneficial Ownership Reporting to January 13, 2025
The Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA) are back in effect! The Financial Crimes Enforcement Network (FinCEN) has recently extended compliance deadlines following the Fifth Circuit Court of Appeals’ decision to lift an injunction against the enforcement of the CTA. This ruling reinstates the obligations for entities across the U.S. to comply with BOI reporting. Here’s what you need to know to ensure compliance.
Key Updates on BOI Filing Deadlines
Entities Formed or Registered Before January 1, 2024:
Initial Deadline: Previously January 1, 2025.
Extended Deadline: Now January 13, 2025.
Entities Registered Between September 4, 2024, and December 23, 2024:
If the original filing deadline fell between December 3, 2024, and December 23, 2024, the new deadline is January 13, 2025.
Entities Registered Between December 3, 2024, and December 23, 2024:
These entities have been granted a 21-day extension from their original filing deadline.
Entities Eligible for Disaster Relief:
May qualify for additional extensions beyond January 13, 2025.
Entities Formed or Registered On or After January 1, 2025:
Must file BOI reports within 30 days of formation or registration.
Beneficial Ownership Reporting Under the Corporate Transparency Act: Important Updates FinCEN Extends Deadlines for Beneficial Ownership Reporting to January 13, 2025
Implications of the Fifth Circuit Ruling
The Fifth Circuit Court’s ruling lifted the injunction, reinforcing the constitutionality of the CTA. The court emphasized that compliance imposes minimal burdens on small businesses, estimating an average completion time of 90 minutes with no filing fees. This ruling underscores the CTA’s essential role in combating financial crimes and regulating interstate business activities.
What This Means for Your Business
Affected entities must act swiftly to meet the revised deadlines. Non-compliance may lead to penalties, operational delays, and reputational damage. Here’s how to prepare:
Review Your Entity’s Filing Deadlines: Assess your compliance timeline based on your formation or registration date.
Seek Expert Guidance: Consult legal or financial professionals to ensure your filings are accurate and timely.
Stay Proactive: Keep your records updated and monitor any regulatory changes.
Who Is Exempt?
Certain individuals and entities are exempt, including those involved in the National Small Business United v. Yellen case. Be sure to confirm whether your entity qualifies for an exemption to avoid unnecessary filings.
Resources for Further Information:
For more details, visit these resources:
Need Assistance?
If you need help navigating the complexities of the Corporate Transparency Act, contact our experts today. We’re here to simplify compliance and safeguard your business.
Conclusion
With the reinstatement of the CTA’s reporting requirements, it is crucial for affected entities to act quickly to comply with the upcoming deadlines. Stay informed and prepared to fulfill your reporting obligations.
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Disclaimer: This information is of general nature and should not be assumed to provide tax, legal or accounting advice. This website has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. I will be happy to discuss your situation further, but until that time, it is assumed no client/CPA relationship exists. Information within this blog has not been confirmed for accuracy and in many instances has been reposted from other sources.
