On Monday, February 17, 2025, the Federal District Court in Smith v. U.S. Department of Treasury lifted the injunction that was preventing enforcement of the beneficial ownership interest (BOI) filing requirements. The Financial Crimes Enforcement Network (FinCEN) promptly issued an alert on its website confirming that the reporting requirements are back in effect and announcing an extended deadline of March 21, 2025 for the vast majority of reporting companies. FinCEN indicated it will assess its options for potentially modifying the deadline further.
The FinCEN alert also notes that they may provide an update before the new filing deadline of March 21, 2025 if any further modifications do occur. Additionally, companies that had previously been granted a later reporting deadline, such as certain disaster relief extensions, must file their initial BOI report by their originally granted deadline rather than the new March 21, 2025 deadline.
Given this new development, it is crucial to stay informed and prepared as this situation remains fluid.
Businesses that may be affected but have not yet filed with FinCEN should consider the following steps:
Seek legal counsel to determine the best course of action for your specific situation.
Stay informed and monitor updates, legislation, and/or other proceedings which could modify or change the reporting requirement and/or deadline.
Watch for updates on FinCEN’s website www.finCEN.gov, as this situation continues to evolve rapidly.
Potential Congressional Action
Congressional action may impact the reporting deadline. On February 6, 2025, the House of Representatives unanimously passed HR 736 which would delay BOI reporting until January 1, 2026. The bill has now moved to the Senate where a companion bill has been introduced.
As the situation develops, businesses should remain proactive and attentive to further updates to ensure compliance with BOI filing requirements.