On March 2, the U.S. Department of the Treasury suspended the enforcement of Beneficial Ownership Information (BOI) reporting requirements for domestic companies and individuals. This decision means that U.S. businesses are currently not subject to fines or penalties for non-compliance with BOI reporting obligations.

Initially, the BOI reporting requirements were established under the Corporate Transparency Act (CTA) of 2021 to combat illicit financial activities by mandating that businesses disclose information about their beneficial owners.

The Treasury Department plans to re-evaluate the BOI reporting rules and is expected to seek public feedback on potential modifications later this year.

Here is an overview of past updates and rulings:

January 7, 2025 – A federal district court in Texas (Smith, et al. v. U.S. Department of the Treasury, et al.) issued a temporary injunction preventing FinCEN from enforcing the BOI reporting rule.

February 5, 2025 – The U.S. Department of Justice appealed the decision and requested a stay, emphasizing the rule’s importance for financial transparency and national security.

February 18, 2025 – The court granted a temporary stay of its previous order, reinstating the BOI reporting requirements while the appeal is underway.

March 21, 2025 – FinCEN announced a 30-day extension from the date of its notice, establishing this as the new filing deadline for most reporting companies.

Beneficial Ownership Information Reporting refers to the process of disclosing and documenting the individuals who ultimately own or control a legal entity, such as a company or trust. The concept is crucial for promoting transparency and preventing illicit financial activities, such as money laundering, tax evasion, corruption, human and drug trafficking, as well as fraudulent actions against employees, customers, and other businesses.

By providing this information through the beneficial ownership information report, companies aid authorities in maintaining the integrity of financial systems and preventing the misuse of corporate entities for illegal purposes.

A beneficial owner of a company is someone who exercises substantial control over the company, or owns or controls at least 25 percent of the company’s interests. This includes:

• Senior officers, such as presidents, CFOs, CEOs, COOs
• Important company decision makers
• Someone who has authority to appoint or remove officers or directors
• Someone who owns or controls at least 25 percent of the company’s ownership, equity, voting rights, or stock

The goal of Vyde has always been to help small business owners achieve their own business success. We strive to provide industry-leading accounting services to help you stay compliant and save money, time, and stress.

Our expert team can help you navigate BOI reporting requirements. We ensure accuracy, compliance, and timely submissions, helping you navigate the requirements effortlessly.

Yes you can! Business owners can file the report online at boiefiling.fincen.gov/fileboir. For more details about how to file a BOI Report yourself, explore our guide.

Business owners may encounter difficulties in understanding the criteria for beneficial ownership and accurately documenting this information. Managing filing deadlines, keeping up with regulatory changes, and avoiding errors in submissions can also pose significant obstacles. Our team can help you file your BOI Report, stay compliant, and avoid penalties.

No. You do not need to file another BOI report unless information about your company or its beneficial owners changes. If that happens, you can file an update with FinCen or reach out to our team and we can make the update for you!