The Financial Crimes Enforcement Network (FinCEN) recently announced that it will not impose fines, penalties, or any enforcement actions against companies that fail to file or update their beneficial ownership information (BOI) reports by the current deadlines set under the Corporate Transparency Act (CTA).
This move is a big change in the way regulations work. It gives businesses more time to meet BOI reporting standards without having to worry about what will happen right away. Right now, March 21, 2025, is the last day for most businesses to file, update, or fix their BOI reports.
That being said, FinCEN has made it clear that there will be no fines or other steps taken until a new temporary final rule is put into effect and the new dates set by that rule have passed. FinCEN promised that this interim final rule would be made public by March 21, 2025. One important thing to remember about this statement is that FinCEN is seriously thinking about making more important changes to the current BOI reporting rules.
The main goal is to make it easier for small companies to follow the rules while still making sure that BOI reports continue to help with intelligence, national security, and law enforcement goals. This idea fits in with the larger goal of making it easier to follow the rules and removing as many pointless governmental obstacles as possible.
Companies that are supposed to file reports can still send in their BOI reports up until the deadline. But since FinCEN has said that the deadlines for filing will probably be pushed back, businesses may want to wait to do so until the new dates are confirmed. Businesses can avoid updates or changes in standards that might mean they have to file again later with this method.
FinCEN confirmed its position in a news statement on February 27, 2025, by making it clear that it will not punish companies that don’t file or update BOI reports by the due dates. Furthermore, the agency intends to engage with stakeholders and solicit public comments on proposed changes to BOI reporting requirements.
These revisions are expected to be addressed in a notice of proposed rulemaking later this year. The objective is to ensure that BOI reporting remains effective for law enforcement while reducing compliance challenges for businesses. Businesses should stay up to date on any new information from FinCEN because the final filing deadlines are still unclear.
Some companies might have to meet targets again before the planned ruling process is over, but it’s still likely that there will be a lot of room for leeway. FinCEN’s action also makes me wonder what’s going on with a separate congressional effort to push back the date for BOI reports until January 1, 2026.
It remains to be seen if this new announcement will mean that no more legislation or executive action is needed. Businesses should keep a close eye on regulatory changes since BOI reporting is now largely optional until further notice.
Following the CTA rules is still important, but waiting BOI reports until FinCEN finishes its temporary rule might be the smartest thing to do. Companies should make sure they are ready for any changes that might be made to their filing requirements and keep up with how the rules for BOI reporting are changing.
