The ups and down of the Corporate Transparency Act and its Beneficial Ownership Information reporting continue to smash compliance and legal departments against their lap bars. The current release from FinCEN feels like another loop-de-loop.
On February 18, 2025, the U.S. District Court for the Eastern District of Texas in the case of Smith, et al. v. U.S. Department of the Treasury, et al. stayed the injunction that barred FinCEN from requiring the Beneficial Ownership Information reporting. As FinCEN provided in the request to the court, FinCEN is providing a 30-day extension for filing.
The new filing deadline is March 21.
BUT….
FinCEN added this statement:
“Notably, in keeping with Treasury’s commitment to reducing regulatory burden on businesses, during this 30-day period FinCEN will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks. FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.”
Will there be changes to the reporting requirements?
I don’t know.
So should I file now, if there is a possibility that the reporting requirements will change?
I don’t know.
Will the Trump-appoint Department of Justice fight for the CTA in the Fifth Circuit or let the underlying constitutional finding stay?
I don’t know.
This rollercoaster has not come to a stop yet. I think there are more loops and drops to come.
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