Important BOI update: Enforcement paused
Last week the Financial Crimes Enforcement Network (FinCEN) announced it will not issue fines or penalties or take other enforcement actions against businesses that fail to file or update beneficial ownership information (BOI) reports pursuant to the Corporate Transparency Act (CTA) by the current deadlines.
No fines or penalties will be issued, and no enforcement actions will be taken, according to a FinCEN statement.
In mid-February, FinCEN announced it would begin enforcing the BOI reporting requirements and most businesses would have until March 21 to comply. This followed a court decision that struck down a nationwide injunction.
FinCEN’s latest announcement pauses enforcement while the agency works to come up with a new reporting deadline.
“For now, we don’t need to worry about the March 21 deadline. This is good news, and we need to stay tuned for more from FinCEN,” Melanie Lauridsen, the AICPA’s vice president–Tax Policy & Advocacy, said in a LinkedIn post.
By March 21, FinCEN said it intends to issue an interim final rule that extends BOI reporting deadlines. FinCEN will also solicit public comment on potential revisions to existing BOI reporting requirements.
The enforcement pause comes after several court challenges and a bill that passed the U.S. House in February that extended the BOI reporting deadline. In addition, the AICPA and state CPA societies have written numerous letters to Congress and FinCEN, urging a delay in the reporting deadline.
The CTA is an anti-money-laundering initiative that requires small businesses to disclose the identity of people who directly or indirectly own or control a company.
Learn more:
FinCEN BOI Website: https://www.fincen.gov/boi
FinCEN BOI FAQ: https://www.fincen.gov/boi-faqs
FinCEN BOI Reporting Tutorial: https://www.youtube.com/watch?v=GydCvfbKxPw&t=10s
