If you have any questions regarding BOI and how this may affect your nonprofit, please don’t hesitate to contact us.
February 18, 2025
Corporate Transparency Act Reporting Requirements Back in Effect
Following the February 18, 2025, decision by the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336, the Financial Crimes Enforcement Network (FinCEN) has announced that beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act are back in effect, with a new deadline of March 21, 2025 for most companies.
FinCEN has also announced that it will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks. FinCEN intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.
December 26, 2024
Beneficial Ownership Reporting Requirements Once Again on Hold
The U.S. Court of Appeals for the Fifth Circuit has issued an order vacating its December 23, 2024 decision that granted a stay of the preliminary injunction. As a result, the district court’s injunction, issued on December 3, 2024, is now in effect as of December 26, 2024. Consequently, reporting companies are not currently required to submit beneficial ownership information to FinCEN.
December 23, 2024
Beneficial Ownership Reporting Requirements Now Active, with Extended Deadlines
Following a federal Court of Appeals decision on December 23, 2024, reporting companies—unless otherwise specified below—are once again required to submit beneficial ownership information to FinCEN. However, recognizing that the preliminary injunction may have affected companies’ ability to comply, the Department of the Treasury has extended the reporting deadline as follows:
Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports.
Reporting companies created or registered on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports.
Reporting companies created or registered on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports.
Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
Reporting companies that are created or registered on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
As indicated in the alert titled “Notice Regarding National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)”, Plaintiffs in National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)—namely, Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024)—are not currently required to report their beneficial ownership information to FinCEN at this time.”
December 3, 2024
Beneficial Ownership Reporting Requirements On Hold
A recent federal court order has affected the U.S. Department of the Treasury’s beneficial ownership information reporting requirements. However, the Treasury has announced its intention to appeal the order. In the meantime, reporting companies are not required to submit a Beneficial Ownership Information Report and will not face penalties for failing to do so while the order remains in effect. That said, reporting companies still have the option to file a Beneficial Ownership Information Report if they choose to do so.
Additional information can be found on the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) website at https://www.fincen.gov/boi.
If you have any questions regarding how this may affect your nonprofit, please don’t hesitate to contact us.
October 29, 2024
Filing Deadlines Extended for those impacted by recent Hurricanes
FinCEN has released five Notices extending the filing deadlines for Beneficial Ownership Information (BOI) reports for certain reporting companies affected by Hurricane Milton, Hurricane Helene, Hurricane Debby, Hurricane Beryl, and Hurricane Francine. To be eligible, a reporting company must have a BOI reporting deadline that falls within the period starting one day before the disaster’s onset, as determined by the Federal Emergency Management Agency (FEMA), and ending 90 days after that date..
A reporting company must also be located in a region that is designated by FEMA as eligible for individual or public assistance and by the IRS as qualifying for tax filing relief. Please consult the relevant Notice for detailed information:
NOTICE: FinCEN Provides BOI Reporting Relief to Victims of Hurricane Beryl
NOTICE: FinCEN Provides BOI Reporting Relief to Victims of Hurricane Debby
NOTICE: FinCEN Provides BOI Reporting Relief to Victims of Hurricane Francine
NOTICE: FinCEN Provides BOI Reporting Relief to Victims of Hurricane Helene
NOTICE: FinCEN Provides BOI Reporting Relief to Victims of Hurricane Milton
If you have any questions regarding how this may affect your nonprofit, please don’t hesitate to contact us.