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Yet Another Halt: FinCEN Postpones BOI Reporting Deadlines and Suspends Enforcement

By Ryan Root, CPA

February 28, 2025

Despite our tax team’s efforts to wait for the most reliable updates, we have a new and significant update regarding the reporting requirements for Beneficial Ownership Information (BOI) from the Financial Crimes Enforcement Network (FinCEN).

On February 27, 2025, FinCEN announced it is suspending enforcement actions—including penalties and fines—until a new interim final rule is issued. This decision comes after several court challenges and aims to reduce the regulatory burden on businesses while ensuring critical information for national security and law enforcement purposes.

The Corporate Transparency Act (CTA), initially passed in 2021, requires entities to report beneficial ownership details to combat money laundering. Initial deadlines, set for early 2025, have been repeatedly delayed due to legal challenges.

Key Points:

Deadline Extension:
  • The March 21, 2025, BOI reporting deadline has been postponed.
  • FinCEN plans to issue an interim final rule by March 21, 2025, which will establish new extended deadlines.
Suspension of Enforcement:
  • Until the interim rule takes effect and new deadlines pass, FinCEN will not issue penalties or fines for non-compliance.
  • This applies to initial, updated, or corrected BOI reports.
Regulatory Revisions:
  • FinCEN announced it will seek public comments on revising BOI requirements through a Notice of Proposed Rulemaking (NPRM) later this year.
  • The goal is to strike a balance between reducing the compliance burden for small businesses and providing valuable data for law enforcement.
Congressional Action:
  • The U.S. House recently passed a bill to extend the BOI reporting deadline to January 1, 2026, for small businesses. A similar bill is under review in the Senate.

Get in Touch

We hope these updates provide some relief as FinCEN works to balance compliance requirements with national security needs. We’re on the lookout for timely updates to help you keep your business compliant. Contact us if you need advice on BOI reporting requirements or have questions about this article.