On February 27, 2025, FinCEN announced the suspension of fines, penalties, or any other enforcement actions “against any companies based on any failure to file or update beneficial ownership information (BOI) reports pursuant to the Corporate Transparency Act (CTA) by the current deadlines.” FinCEN also announced that, no later than March 21, 2025, FinCEN planned to issue an interim final rule that extends BOI reporting deadlines, recognizing the need to provide new guidance and clarity as quickly as possible, while ensuring that BOI that is highly useful to important national security, intelligence, and law enforcement activities is reported.” See the full announcement here:
On March 2, 2025, the Treasury Department followed FinCEN’s track by announcing that it would issue proposed rulemaking narrowing the scope of beneficial owner reporting requirements under the CTA to foreign reporting companies only. Further, it announced that it would not enforce any penalties or fines related to BOI reporting requirements under the CTA and the future or existing related rules. While the rule making process takes time, the Treasury announced a commitment to protecting the “interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.” See the full announcement here:
What does this mean for your association and board? As has been the case for months, the forecast for BOI reporting and the CTA remains a constant moving target. There continue to be judicial challenges across the country. These latest announcements indicate that the rule making trends towards excluding our association clients from mandatory BOI reporting. But, when/if that sort of rule will go into effect and when the reporting deadlines will be extended to is unclear.
Rees Broome, PC remains committed to providing timely updates to our clients. FinCEN continues to process BOI reporting applications, which our firm remains available to assist on.