Client Alert: FinCEN will not issue fines or penalties on companies for failing to submit BOIRs
In the most recent development regarding enforcement of the Corporate Transparency Act (CTA) and Beneficial Ownership Information Report (BOIR), on February 27, 2025, FinCEN announced that it will not impose fines or penalties on companies that do not submit their beneficial ownership information reports (BOIRs) by the upcoming deadline of March 21, 2025. The agency will issue an interim final rule to establish new reporting deadlines no later than March 21 and intends to revise the Beneficial Ownership Information Reporting Rule this year to reduce burdens for small businesses. Until the interim final rule becomes effective and the new reporting due dates have passed, FinCEN will not take any enforcement actions against companies for failing to submit their BOIRs.
As noted in our previous client update, Congress is currently considering legislation that may further extend reporting deadlines. Nonetheless, reporting companies should consider filing the BOIRs as soon as possible.
We will continue to monitor for developments in Congress and further announcements by FinCEN.