FinCEN Beneficial Ownership Information Reporting Rule Back in Effect

The Financial Crime Enforcement Network’s (FinCEN) Beneficial Ownership Information reporting rule and requirements as mandated by the Corporate Transparency Act (CTA) are back in effect. A Texas federal court in the Smith et al. v. U.S. Department of Treasury case lifted the injunction halting FinCEN’s actions related to the Beneficial Ownership Information Reporting Rule. The Texas federal court’s actions are in alignment with the Supreme Court’s decision in the Texas Top Cop Shop, Inc. order lifting a nationwide injunction related to the CTA. Actions by the Supreme Court and the Texas federal court will now allow FinCEN to proceed with further implementation and enforcement of the Beneficial Ownership Information Reporting Rule.

FinCEN has announced that it is extending the compliance deadline to March 21, 2025, for reporting companies and entities to file initial BOI reports or to update and correct a BOI report. FinCEN is providing entities with additional time due to current litigation. FinCEN has also noted that it “intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.”

Visit FinCEN's Beneficial Ownership Information page to find FinCEN’s impact statement regarding the current litigation and update.

NAR will continue to provide insight and updates as it relates to the Beneficial Ownership Information Reporting Rule and the Corporate Transparency Act (CTA).