People take photos of the US Treasury Department building in Washington, DC on February 6, 2025.
Mandelungan | AFP | Getty Images
The Treasury Department sets a new deadline of March 21 to meet new reporting requirements for “beneficial ownership information” after federal agencies can begin implementing the measures. I did.
The Corporate Transparency Act, enacted by Congress in 2021, requires small businesses to disclose the identity of people who own or control the company directly or indirectly. The measure, according to the Treasury, aims to prevent criminals from concealing illegal activities committed through shell companies or opaque ownership structures.
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Companies suffer from some whiplash from the Again Off-Again deadline to submit BOI reports. A series of court orders prevented the Treasury from enforcing measures, but only saw the courts hand them down.
On February 18, the US District Court for the Eastern District of Texas lifted a nationwide injunction that prevented the Financial Crime Enforcement Network, known as Fincen, part of the Treasury Department, from enforcing the Corporate Transparency Act. did.
Other rooms for delays?
Federal estimates show that BOI reporting measures apply to approximately 32.6 million companies, including certain companies, limited liability companies and more.
Companies and owners who do not comply with reporting rules may be subject to civil penalties of up to $591 a day, adjusted for inflation. They also managed to stand in prison for up to $10,000 criminal fines and up to two years.
Fincen left the table with the possibility of further delays, even extending its previous reporting deadline for 30 days.
According to the FINCEN Notice, “Fince then we will provide further changes to this deadline. Reporting companies may need additional time to comply with the BOI reporting obligation once this update is provided. I know there is.
Finsen also said it would prioritize enforcement of companies that “substantially pose national security risks.”
