USA – based small businesses now have until March 21 to file their Beneficial Ownership Information (BOI) reports, thanks to a recent court decision. However, further changes to the deadline and reporting requirements are on the horizon, as authorities seek to ease the burden on lower-risk entities.
A federal court has lifted a nationwide ban that had stopped the enforcement of BOI reporting rules under the Corporate Transparency Act (CTA). Now, most small businesses must file their BOI reports by March 21. The court’s decision came after the Department of Justice requested to remove the ban. This ruling follows a similar Supreme Court decision on January 23, which also allowed BOI requirements to move forward in another case.
However, the changes may not stop there. The Financial Crimes Enforcement Network (FinCEN), which enforces the CTA, plans to revise the BOI reporting rule to ease the burden on lower-risk businesses, including many small ones. FinCEN is also considering extending the deadline to give businesses more time. Over the next 30 days, the agency will review options and focus on high-risk entities first. Any updates on deadline changes will be shared to help businesses prepare.
What is BOI Reporting?
The CTA, passed in 2021 as part of an anti-money laundering initiative, requires certain businesses—known as reporting companies—to disclose information about their beneficial owners. Beneficial owners are individuals who ultimately own or control the company. For businesses formed after January 1, 2024, the law also requires disclosure of “company applicants,” defined as individuals involved in filing the formation documents.
The purpose of these disclosures is to prevent money laundering and other financial crimes by increasing transparency in business ownership. Most reports were originally due by the start of 2025, but FinCEN had previously extended the deadline to January 13—a date rendered moot by the earlier injunction.
Why It Matters for USA’s Small Businesses
Complying with BOI reporting can be a daunting task, especially for small businesses with limited resources. The requirements involve gathering and submitting detailed information, which can be time-consuming and complex. Failure to comply can result in severe penalties, including daily fines of $606, up to $10,000, and even two years in prison for willful violations. Unauthorized disclosure of BOI information carries similarly serious consequences.
Given the potential for further changes to the rules and deadlines, it’s crucial for USA’s small businesses to stay informed and seek professional guidance. The American Institute of CPAs (AICPA) and state CPA societies have been advocating for delays in the reporting deadline, recognizing the challenges faced by businesses.
Expert Insight
“The evolving nature of the BOI reporting requirements underscores the importance of having a trusted advisor who can help navigate these changes,” says Jane Smith, a seasoned CPA with extensive experience serving USA’s small business community. “Business owners should not wait until the last minute to address their reporting obligations.”
Staying Ahead of the Curve
While the March 21 deadline provides some breathing room, small businesses should use this time wisely. Reviewing your company’s structure, identifying beneficial owners, and ensuring that all required information is accurate and up to date are essential steps. Businesses that were previously granted later deadlines, such as those qualifying for disaster relief extensions (e.g., April 2025), should follow their specified deadlines.
Moreover, with FinCEN planning to revise the reporting rule, there may be opportunities for simplified compliance for lower-risk entities. Keeping abreast of these developments can help businesses minimize their reporting burden.
How Virtue CPAs Can Help
At Virtue CPAs, we are dedicated to helping USA’s small and midsized businesses succeed. Our comprehensive suite of accounting, tax, and advisory services is designed to meet your unique needs, including assistance with BOI reporting requirements. Our team stays updated of the latest regulatory changes to ensure that you remain compliant and can focus on growing your business. Whether you need help with BOI filings, tax planning, or other accounting services, we are here to support you.
Don’t let the complexities of BOI reporting distract you from running your business. Contact Virtue CPAs today to learn how we can help you stay compliant and focused on what matters most—your success. Visit our website at https://virtuecpas.com/ or Call us at 678-952-9001 to schedule a consultation.