The US Treasury Department has set a new deadline of March 21 for millions of businesses to report “beneficial ownership information” and risk fines of $10,000 or more. The Corporate Transparency Act, enacted in 2021, requires small businesses to disclose the identity of people who own or control the company.
The measure aims to prevent criminals from hiding illicit activity conducted through shell companies or opaque ownership structures. Businesses have faced numerous delays in filing reports, with court orders previously preventing enforcement.
However, a recent US District Court ruling lifted a nationwide injunction, allowing the Treasury to enforce the measure. The new deadline applies to around 32.6 million businesses and those that don’t comply face civil penalties of up to $591 per day, as well as criminal fines of up to $10,000 and two years in prison.
FinCEN has left open the possibility of further delays but will provide an update before the original March 21 deadline. Enforcement will prioritize businesses with significant national security risks.
Source: https://www.cnbc.com/2025/02/20/treasury-boi-reporting-deadline-small-business-court-ruling.html