BOI Announcement Update: Latest Changes and Details
The following is updated information since our revised post was released on March 3.
In a surprise press release, the Treasury Department is announcing that it will not be enforcing any penalties or fines associated with the beneficial ownership information reporting rules for US Citizens or domestic reporting companies. According to the press release, the Treasury Department will issue proposed rulemaking that will narrow the scope of the BOI reporting rules to foreign reporting companies only.
So, for now at least, it looks like domestic companies and US citizens no longer have a BOI filing requirement.
March 3 BOI Updates
The Financial Crimes Enforcement Network (FinCEN) just announced that they will NOT be issuing any fines or penalties, nor will they take any other enforcement actions against any entities for failure to file or update beneficial (BOI) reports until an interim final rule becomes effective. Due dates will be determined once the interim final rule becomes effective – which is slated for no later than March 21, 2025.
Initial Post from February 24 is as follows:
Fortunately, there haven’t been a flurry of government related headlines recently, so we’re quite sure everyone is aware, but just in case, the Beneficial Ownership Information reporting required by the Financial Crimes Enforcement Network is back on – albeit with an extended deadline.
After a slew of back-and-forth court cases, a judge in the Eastern District of Texas agreed with the Department of Justice that a stay of the injunction that initially stopped the BOI reporting was warranted. In legal speak, that’s a double negative – which means that this latest ruling has stopped the stoppage of the BOI reporting requirement.
That’s the bad news. The good news is that businesses have until March 21st to file – if they’re required to. Note that this “if they’re required to” is a very large caveat. There are a plenty of exemptions for larger companies and companies that already have another legal requirement to register with the federal government. FinCen has a very helpful FAQ section that can be referenced if one’s not sure if they’re required to file. One catch-all requirement that many companies find helpful is that if their organization has more than five million in gross receipts, more than twenty employees, and operate in the U.S., they’re probably exempt from filing. If an entity is under those numbers, there’s a good chance they do need to file.
As always, please contact us if you have questions about the information outlined above, our seasoned and experienced tax professionals are here to help. You can also learn more about our Tax services by visiting our website.
