FinCEN Extends Beneficial Ownership Report Deadlines

The U.S. Court of Appeals for the Fifth Circuit has reinstated the enforcement of the Corporate Transparency Act (CTA) by lifting a previously issued injunction, allowing the Financial Crimes Enforcement Network (FinCEN) to require reporting companies to submit Beneficial Ownership Information (BOI) reports. In response to the time lost due to the injunction, FinCEN has extended the deadlines for filing: companies registered before January 1, 2024, now have until January 13, 2025, to file, while those registered between December 3 and December 23, 2024, are granted an additional 21 days. This decision impacts approximately 32.6 million businesses that must comply or face significant penalties, including fines of up to $10,000. Despite the extension, reports indicate that compliance rates remain low, with only about 30% of expected filings submitted by early December 2024. The Department of Justice is appealing the initial ruling that halted the CTA, and the situation is being closely monitored for further developments.