Recent developments have led the Financial Crimes Enforcement Network (FinCEN) to extend several beneficial ownership information (BOI) reporting deadlines under the Corporate Transparency Act (CTA). These adjustments, prompted by a federal Court of Appeals decision on December 23, 2024, aim to provide businesses with additional time to comply following a temporary suspension of requirements. This article outlines the new deadlines, key exemptions, and steps companies should take to meet these obligations.

Updated Reporting Deadlines

1. Companies Created or Registered Before January 1, 2024
The updated filing deadline for these entities is now January 13, 2025. This extension allows more time for businesses to gather the required information and submit their BOI reports, moving the original January 1, 2025, deadline back by nearly two weeks.

2. Companies Created or Registered Between September 4, 2024, and December 23, 2024
Entities originally required to file their BOI reports between December 3, 2024, and December 23, 2024, now have until January 13, 2025 to meet their reporting obligations. This adjustment ensures businesses affected by the temporary suspension have adequate time to comply.

3. Companies Created or Registered Between December 3, 2024, and December 23, 2024
These entities are granted an additional 21 days from their original deadline to file BOI reports. This added time acknowledges the disruptions caused by the temporary suspension of CTA requirements during this period.

4. Companies Qualifying for Disaster Relief
Businesses impacted by disasters may benefit from extended deadlines that go beyond January 13, 2025. If disaster relief provisions apply, the later applicable date will govern the deadline for filing.

5. Companies Created or Registered on or After January 1, 2025
Starting in 2025, newly created or registered entities must submit their BOI reports within 30 days of receiving notification that their creation or registration is effective. This deadline ensures new businesses align with BOI compliance from the outset.

Entities Exempt from BOI Reporting

Certain businesses are not required to file BOI reports under the CTA. Notably, only the plaintiffs involved in the case National Small Business United v. Yellen, including Isaac Winkles and related reporting entities, remain exempt at this time. If you have questions about this, you should seek legal advice.

Legal Context Behind the Updates

The changes to reporting deadlines stem from ongoing legal challenges to the CTA. On December 3, 2024, a nationwide preliminary injunction was issued in Texas Top Cop Shop v. Garland, temporarily halting enforcement of BOI reporting requirements. However, the U.S. Court of Appeals for the Fifth Circuit stayed this injunction on December 23, 2024, allowing FinCEN to resume enforcement while appeals are pending. These legal developments necessitated the updated deadlines to ensure compliance without penalizing businesses affected by the suspension.

Steps to Ensure Compliance

Businesses can take several proactive steps to meet these revised deadlines and avoid penalties:

• Determine Your Deadline: Identify your company’s creation or registration date to establish the applicable filing timeline.
• Consult Advisors: Seek guidance from legal or financial professionals to ensure your understanding of BOI requirements is accurate and complete.
• Utilize FinCEN Resources: Access FinCEN’s official website for filing instructions, FAQs, and other tools designed to streamline the reporting process.
• Stay Updated: Keep track of any additional changes or extensions that may arise due to ongoing litigation or regulatory adjustments.

Looking Ahead

The extended deadlines provide businesses with more time to fulfill their BOI reporting obligations. However, companies should not delay in preparing their submissions, as compliance with the CTA is critical to avoid penalties. With the updated guidelines in place, businesses have a clear path forward to align with these regulatory requirements.

For further assistance, consult FinCEN’s resources or your legal advisors to ensure all necessary steps are taken.

Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. For specific guidance, please consult a qualified attorney familiar with Seattle business regulations.