Reported by ALEXANDRA SVOKOS

(Summarized version featured below.)

The Kiplinger article highlights the evolving deadlines for the Beneficial Ownership Information (BOI) reporting requirement under the Corporate Transparency Act (CTA). Initially, businesses were required to file their BOI reports by January 1, 2025, but legal challenges led to delays. A court ruling on February 18, 2025, reinstated the requirement, prompting the Financial Crimes Enforcement Network (FinCEN) to set a new filing deadline of March 21, 2025.

Despite this deadline, FinCEN announced that it would not enforce penalties for businesses that fail to file by March 21, 2025. This means that while the reporting requirement remains in place, companies will not face fines or legal consequences for missing the deadline. The uncertainty surrounding enforcement stems from ongoing legal battles, particularly opposition from groups like the National Federation of Independent Business, which argues the requirement is burdensome.

The BOI reporting rule applies to an estimated 32.6 million small businesses, including corporations and LLCs formed before January 1, 2024. Those registered after this date have different timelines—90 days for businesses formed in 2024 and 30 days for those formed in 2025. However, due to FinCEN’s decision not to enforce penalties, businesses may delay filing without immediate consequences.

Given the legal uncertainty, small business owners should monitor further updates on BOI reporting. While there is no penalty for missing the March 21, 2025, deadline, compliance may eventually be required. Consulting a financial or legal advisor can help businesses navigate potential future obligations and ensure they are prepared for any changes in enforcement.

Read full report: https://www.kiplinger.com/business/small-business/boi-report-deadline-for-small-businesses