Following a decision by the U.S. District Court of the Eastern District of Texas to stay its earlier injunction, the Corporate Transparency Act’s beneficial ownership information (BOI) reporting requirement has been reinstated. The Financial Crimes Enforcement Network (FinCEN) has announced a revised deadline of March 21 for the majority of small businesses to submit their BOI reports. Penalties for willful violation of the Act include civil penalties of up to $500 per day. Violators may also be subject to imprisonment for up to two years and criminal fines up to $10,000. It’s important to note, however, that this deadline is subject to potential adjustments, as FinCEN has indicated that it may extend this timeline based on emerging needs.
This announcement follows the district court’s decision in Samantha Smith and Robert Means v. U.S. Department of the Treasury, which lifted the last remaining nationwide injunction against the BOI filings, a measure supported by precedent set in McHenry v. Texas Top Cop Shop, Inc.
FinCEN has specified that small businesses previously given a later filing deadline, such as those granted an April deadline due to disaster relief considerations, should adhere to their extended deadlines. Over the next 30 days, FinCEN will evaluate options for further modifying these deadlines, giving priority to filings from entities that represent significant national security concerns.
In addition, FinCEN plans to initiate revisions to the BOI reporting rules to reduce the burden on lower-risk entities, many of which are U.S. small businesses. This revision process is anticipated to make compliance more manageable for these businesses.
Companies needing assistance with their BOI filings can reach out directly to BCC at cta@bcclegal.com. Our team is prepared to handle the filing process, ensuring compliance with the updated regulations. Business owners should stay alert for any updates from FinCEN regarding potential changes to the filing deadline. Direct filing can be made via FinCEN’s official website (FinCEN.gov/boi); however, BCC remains available to assist its clients in this process.
This regulatory update is especially pertinent as we approach oral arguments scheduled for April 1 in the Fifth Circuit Court of Appeals regarding the previously halted enforcement of the Corporate Transparency Act. Decisions from this case are expected shortly after, but they will come after the new March 21 deadline.
For comprehensive filing support, please contact BCC’s dedicated team at cta@bcclegal.com.