Beneficial Ownership Reporting Resumes

As of Monday, February 17th, a federal district court in the case of Samantha Smith and Robert Means v. U.S. Department of Treasury, lifted the last nationwide injunction that was stopping the BOI filing requirement from being enforceable. The order in the case granted a DOJ request for a stay of the court’s injunction. FinCEN has said that they “intend” to extend the reporting deadline for all reporting companies by 30 days from when the stay was granted and will also review their options to update future deadlines or reporting requirements. The new deadline to file Beneficial Ownership Information Reports will be March 21st, 2025 for most companies.

Additionally, the U.S. House of Representatives passed the bipartisan “Protect Small Businesses from Excessive Paperwork Act” (H.R. 736) on February 10, 2025, with a unanimous 408-0 vote. The bill is now sitting with the Senate for their vote. If the bill passes the Senate and is signed into law by the President, the bill would extend the deadline for small businesses and its beneficial owners to report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) until January 1, 2026.

This applies to businesses that meet the "small business concern" definition under U.S. law. The proposed extension aims to give businesses more time to comply without facing penalties, addressing concerns about high compliance costs and unclear regulations. The bill was co-sponsored by Representatives Zach Nunn and Don Davis, who emphasized the need for clarity and protection for small businesses. Senator Tim Scott introduced a companion in the Senate (S.505), aiming to give businesses more time to understand the requirements and avoid unnecessary burdens.

In the meantime, reporting companies should resume their preparations to file the Beneficial Ownership Information Report (BOI) by the proposed deadline. Furthermore, businesses formed after January 1, 2024, must still comply with the original reporting deadlines.

It is essential to stay informed about the future of the Beneficial Ownership Information (BOI) reporting requirement, as ongoing court decisions could significantly impact compliance deadlines and obligations. By staying updated on these developments, reporting companies can proactively respond to any shifts in the law and ensure continued compliance with government regulations.

GRIFFING & COMPANY, P.C.

(281) 491-8866 Fax (281) 491-8998

info@griffing.com

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