Corporate Transparency Act Update: BOI Reporting Back in Effect

The Corporate Transparency Act is Back: What Your Business Needs to Do Now

A major court ruling has reinstated the Corporate Transparency Act (CTA), meaning businesses across the U.S. must comply with Beneficial Ownership Information (BOI) reporting once again. If your company was waiting due to legal uncertainty, now is the time to act.

What Just Happened?

On February 17, 2025, the U.S. District Court for the Northern District of Texas overturned a previous injunction in the case of Samantha Smith v. U.S. Department of the Treasury. This decision reactivates the enforcement of the CTA, requiring businesses to resume compliance with BOI reporting rules.

With this ruling, the Financial Crimes Enforcement Network (FinCEN) has released updated filing deadline of 3/21/2025.

To view the official notice from FinCEN: Read Here.

What This Means for Your Business

If your business was waiting for legal clarity, it’s time to prepare. Unless new legal action or legislation intervenes, businesses formed before January 1, 2024, will likely need to file their BOI reports within 30 days once FinCEN issues its official guidance.

Could the Deadline Be Extended?

A proposed bill in Congress could push the filing deadline to January 1, 2026. However, this legislation is still under review, and businesses should not assume they have extra time. Until the bill is passed by the Senate and signed into law, FinCEN’s anticipated 30-day deadline remains in effect.

Corporate Transparency Act: Who Needs to File?

Most small businesses, LLCs, and corporations in the U.S. are required to file BOI reports. These filings disclose individuals who own or control at least 25% of a company or have significant decision-making power.

Failing to file on time can result in civil fines and even criminal liability, making compliance a critical priority.

How to Prepare for BOI Reporting Compliance

• Stay informed – Monitor FinCEN’s announcements for updates on the compliance deadline.
• Gather required information – Identify beneficial owners and collect necessary details such as legal name, date of birth, residential address, and a government-issued ID number.
• Be ready to file – Once FinCEN confirms the deadline, businesses will likely have only 30 days to comply, so preparing in advance is crucial.

Why BOI Reporting Matters

The Corporate Transparency Act is designed to prevent financial crimes like money laundering, tax evasion, and fraud by increasing transparency in business ownership. Filing your BOI report helps ensure compliance while contributing to a more secure financial system.

Businesses should take proactive steps now to avoid penalties and unexpected deadlines. Keeping up with regulatory changes and preparing in advance will make the filing process smoother.

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