URGENT: New BOI Reporting Deadlines & Compliance Rules—Avoid Penalties!
Beneficial Ownership Information Access: What You Need to Know
The Corporate Transparency Act (CTA) has been a major regulatory shift for businesses, requiring them to report Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). However, recent legal developments have created significant changes in compliance timelines and enforcement.
New Court Ruling: BOI Reporting is Now Mandatory
On February 18, 2025, the U.S. District Court for the Eastern District of Texas granted FinCEN a stay order on its previously issued preliminary nationwide injunction on the enforcement of the Corporate Transparency Act (CTA). As a result, BOI reporting requirements are now mandatory again.
Updated BOI Reporting Deadlines
Following the stay order, FinCEN has issued updated guidance on compliance deadlines:
- For most reporting companies (formed before January 1, 2024), the new deadline to file, update, and/or correct their BOI report is now March 21, 2025 (previously January 1, 2025).
- For reporting companies formed or registered between January 1, 2024, and February 17, 2025, the existing 90-day window to file remains unchanged.
- For reporting companies formed or registered on or after February 18, 2025, the BOI report must be filed within 30 days from the date of creation or registration.
- Companies that were previously granted extended deadlines due to disaster relief should follow the later deadlines as provided.
- Updating Information: Any changes to previously reported BOI must still be filed within 30 days of the change.
Key Points of the Access Rule
Authorized Recipients
The Access Rule specifies six categories of authorized BOI recipients:
- U.S. Federal agencies engaged in national security, intelligence, or law enforcement
- U.S. State, local, and Tribal law enforcement agencies
- Foreign law enforcement agencies and authorities
- Financial institutions for customer due diligence compliance
- Federal functional regulators and supervisory agencies
- U.S. Department of Treasury officers and employees
Security and Confidentiality Requirements
Strict security protocols are mandated for all authorized recipients:
- Domestic agencies must establish procedures to protect BOI confidentiality
- Financial institutions must implement safeguards similar to those used for customers’ nonpublic personal information
- Foreign requesters must comply with international treaty requirements or establish their own security standards
Re-Disclosure Restrictions
BOI re-disclosure is generally prohibited, with limited exceptions for specific circumstances within authorized entities.
Failure to Comply Could Result in Penalties
With BOI filings now reinstated as mandatory, the potential penalties for non-compliance could be severe. Businesses that fail to submit the required information may face civil and criminal consequences, including substantial fines. It is crucial for all reporting companies to ensure compliance with these new deadlines to avoid penalties and enforcement actions.
Failing to meet these deadlines can result in severe penalties:
- Civil penalties of up to $500 per day
- Criminal penalties including fines up to $10,000
- Potential imprisonment for up to two years
Next Steps for Businesses
- Determine if your company is a “reporting company” under the CTA
- Identify beneficial owners and gather required information
- Prepare for filing well before the deadline
- Establish procedures for ongoing compliance and updates
Free Video Consultation
At The Law Office of Barry E. Janay, P.C., we understand the complexities of these new regulations. To help you navigate these changes and ensure your business’s compliance, we are offering a free video consultation. Our experienced team can provide personalized guidance on how these rules affect your organization and the steps you need to take.
Don’t risk non-compliance. Schedule your free video consultation today and take proactive steps to protect your business.
For more detailed information on the Access Rule, visit the official FinCEN fact sheet. If you have any questions about BOI reporting, contact us today to ensure your business remains compliant.
