In the latest development regarding the Corporate Transparency Act (CTA), reporting requirements are back in effect after the court lifted the preliminary injunction. FinCEN has extended the deadline for Beneficial Ownership Information (BOI) reporting by 30 days, following the February 18, 2025, decision by the U.S. District Court for the Eastern District of Texas. In the meantime, Congress is considering legislation that could further delay the compliance deadline.
Key Development
February 19, 2025 – FinCEN announced a 30-day extension, setting the new reporting deadline for most companies to March 21, 2025.
Congressional Action to Delay Compliance
Congress is also considering a further delay to the CTA’s effective date. The House passed H.R. 736, the Protect Small Business from Excessive Paperwork Act, by a bipartisan vote of 408-0. This bill would postpone the BOI reporting deadline for most companies to January 1, 2026. A similar bill, S. 505, has been introduced in the Senate, but no votes have been scheduled yet.
If enacted, the legislation would extend the reporting deadline only for entities existing before January 1, 2024. Companies formed after that date would still be required to comply with the original CTA timeline.
Guidance for Reporting Companies
- If you haven’t filed: You now have until March 21, 2025, to do so. Filing remains free through FinCEN’s E-Filing system. This date could change if there is an agreement by Congress.
- If you’ve already filed: You’re legally compliant and do not need to take further action unless updates or corrections are required.
What’s Next for the CTA?
The ICCFA is closely monitoring these developments and will provide further updates as necessary. We encourage members to stay informed about their CTA obligations and prepare for regulatory adjustments. For a more detailed breakdown, please read the full article on CTA compliance.
Thank you for your attention to this matter and your continued commitment to compliance.
