Reporting Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN)
Small businesses previously required to report Beneficial Ownership Information to the Financial Crimes Enforcement Network (FinCEN) are not required to comply with reporting requirements because the constitutionality of the Corporate Transparency Act (CTA) is subject to ongoing litigation.
The CTA, a bipartisan law passed by Congress in 2021 to curb illicit finance, required many companies doing business in the United States to report information about who ultimately owns or controls them to FinCEN, which is part of the U.S. Treasury Department.
As a result of a district court injunction and as noted on FinCEN’s Beneficial Ownership Information Reporting website, the January 1, 2025 reporting deadline is no longer in effect pending ongoing litigation. As noted by FinCEN:
In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
To understand the series of court decisions related to the injunction in the final days of December 2024, please see details provided on FinCEN’s Beneficial Ownership Information Reporting website.
Additional Helpful Resources for Businesses:
- For more information: Beneficial Ownership Information Reporting | FinCEN.gov
- Small business resources: Small Business Resources | FinCEN.gov
- Sign up for updates: https://service.govdelivery.com/accounts/USFINCEN/subscriber/new
- Questions: Contact Us | FinCEN.gov
Corporate Transparency Act Reporting Requirements – Recorded Webinar
Webinar aired in October 2024.
Mark High, Member, Detroit office of Dickinson Wright PLLC and Alexis Lupo, Corporations Division Director; Michigan Department of Licensing & Regulatory Affairs (LARA) Corporations, Securities & Commercial Licensing Bureau will be presenting on the CTA reporting. It is important that Small to Mid-sized businesses learn about reporting this information to FinCEN.