In the latest development in what has become a drawn out, on-again-off-again, bureaucratic saga for small U.S. businesses, the Treasury Department's Financial Crimes Enforcement Network (FinCEN) has reinstated the requirement for companies to disclose their beneficial ownership information (BOI), setting a new compliance deadline of March 21, 2025.
Where we're at: Treasury’s mandate is part of the Corporate Transparency Act (CTA), enacted in 2021 with the aim of combating illicit financial activities by increasing corporate transparency. The reinstatement follows a series of legal challenges:
- On February 17, 2025, the U.S. District Court for the Eastern District of Texas lifted a previous injunction that had halted the enforcement of the CTA's reporting requirements.
- This decision was influenced by a U.S. Supreme Court ruling in January 2025, which stayed a similar injunction from another case, thereby allowing the CTA's provisions to take effect.
- Non-compliance could result in $500-$10,000 in fines. For more info, visit the FinCEN website.
