The US Treasury Department has delayed the deadline for small businesses to file a new “beneficial ownership information” report by about two weeks, to January 13, 2025. The delay comes after recent federal court rulings.
The Corporate Transparency Act, which aims to curb illicit finance, requires around 32.6 million businesses to file the report with the Financial Crimes Enforcement Network (FinCEN) by January 1. Noncompliance carries potential fines of up to $10,000 and civil penalties of up to $591 a day.
However, many small businesses are exempt from filing, including those with over $5 million in gross sales and more than 20 full-time employees. The Treasury Department has recognized that reporting companies may need additional time to comply due to the recent court ruling, which temporarily blocked FinCEN from enforcing the rule.
As of December 1, only about 9.5 million businesses had filed their reports, accounting for around 30% of the estimated total. Some data suggests that few businesses have complied with the requirement, possibly due to unawareness or lack of information.
Law firms and experts warn that it’s unlikely FinCEN would impose financial penalties except in cases of bad faith or intentional violations. The Treasury Department aims to educate the public about the requirement rather than taking enforcement actions against noncompliant companies.
The delay is expected to have an impact on the ongoing litigation, including a case challenging the constitutionality of the Corporate Transparency Act, which may eventually reach the Supreme Court.
Source: https://www.cnbc.com/2024/12/26/treasury-delays-deadline-for-small-businesses-to-file-new-boi-form.html