The Financial Crimes Enforcement Network (FinCEN) has announced an extension to the current March 21 deadline for beneficial ownership information (BOI) reporting. The agency has also suspended enforcement actions and plans to develop new regulations aimed at reducing the “regulatory burden.” This decision prioritizes the reporting of BOI for entities that pose significant law enforcement and national security risks, according to a FinCEN release. Although no new deadline has been set, FinCEN stated that it will announce one by March 21.
FinCEN confirmed that it will not impose fines or penalties for failing to file or update BOI reports by the existing deadlines until an interim final rule becomes effective and new due dates are established. The agency emphasized the need to provide clear guidance while ensuring that BOI useful for national security and law enforcement is reported. This move follows a federal district court’s decision to lift the nationwide injunction that had prevented FinCEN from enforcing BOI reporting deadlines under the Corporate Transparency Act (CTA).
FinCEN plans to seek public comments on potential revisions to BOI reporting requirements as part of a notice of proposed rulemaking (NPRM) expected later this year. The NPRM aims to minimize the burden on small businesses while ensuring that BOI remains valuable for national security purposes. Comments will also help determine if reporting deadlines need adjustment.
Melanie Lauridsen, the AICPA’s vice president of Tax Policy & Advocacy, welcomed the decision, stating that it reflects FinCEN’s commitment to reducing regulatory burdens. She urged FinCEN to extend the filing deadline to January 1, 2026, and confirmed that the AICPA will submit formal comments during the rulemaking process.
This announcement follows several court challenges and legislative actions, including a U.S. House bill to extend the BOI reporting deadline for most small businesses to January 1, 2026. Under the CTA, reporting companies must disclose beneficial owner identities, with additional requirements for new entities incorporated after January 1, 2024. Willful violations can result in fines of up to $10,000 and two years in prison.
— news from Journal of Accountancy