HERE WE GO AGAIN…FinCEN Announces Temporary Non-Enforcement of BOI Deadlines

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Fen Cen Announcement

URGENT NEWS…..What Small Business Owners Need to Know

Small business owners have been scrambling to comply with the Corporate Transparency Act (CTA), a new federal law requiring companies to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). However, recent developments have provided temporary relief.

On February 27, 2025, FinCEN announced that it would not impose fines, penalties, or any other enforcement actions against companies that fail to meet the current CTA reporting deadlines. This decision comes after months of legal battles that resulted in multiple injunctions preventing enforcement of the law. The last of these injunctions was lifted on February 18, 2025, allowing FinCEN to move forward—albeit with a more flexible approach.

What Does This Mean for Small Business Owners?

For now, this means that if your business is required to file a Beneficial Ownership Information (BOI) Report, you won’t face penalties for missing the current deadlines. FinCEN has stated that this non-enforcement position will remain in effect until it issues a new interim final rule, expected no later than March 21, 2025. This rule will provide updated deadlines and further guidance for compliance.

A Quick Recap of the CTA’s Requirements

The CTA primarily impacts smaller, privately held businesses that are not otherwise regulated by federal authorities. If your company falls under this category, you will eventually need to submit a report to FinCEN that includes:

  • The identities of your company’s beneficial owners (those who own or control at least 25% of the business or exercise significant control).
  • Personal identifying details of those owners, as well as the individuals responsible for forming the company.

This information is intended to increase transparency and prevent financial crimes such as money laundering and fraud. FinCEN will be authorized to share these details with government agencies and, in certain cases, financial institutions.

What Should Business Owners Do Now?

While enforcement is paused, the CTA is still the law, and businesses should prepare for compliance. Here are some practical steps you can take:

  1. Assess whether your business is subject to the CTA. Not all entities are required to file, but most small LLCs and corporations will need to comply.
  2. Gather the necessary information. Even though the deadlines are shifting, having your beneficial ownership details ready will help you avoid a last-minute rush.
  3. Stay informed. FinCEN’s new interim final rule will clarify deadlines, and businesses should be ready to act once the revised timeline is announced.

At Bellas & Wachowski, we are closely monitoring developments on the CTA and will provide timely updates to help business owners navigate these requirements. If you have questions about how the CTA applies to your business, contact us today to ensure you’re prepared for compliance when enforcement resumes.

Stay tuned for more updates as this situation evolves.