Major FinCEN Update: BOI Reporting Is Back In Effect–New Deadline is March 21, 2025

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Information based on the latest guidance from FinCEN – Updated February 20 at 11:30 AM EST

Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA) are officially back in effect. Following the latest court ruling, businesses must now comply with BOI filing obligations, with updated deadlines in place. Staying informed is critical as FinCEN moves forward with enforcement and potential further modifications.

Here’s what you need to know.

BOI Reporting Requirements Are Reinstated

On February 18, 2025, the U.S. District Court for the Eastern District of Texas ruled in Smith et al. v. U.S. Department of the Treasury et al., 6:24-cv-00336 (E.D. Tex.), reinstating the CTA’s BOI reporting requirements. As a result, businesses that fall under reporting company criteria must now meet their BOI filing obligations.

However, recognizing the need for additional time, FinCEN is generally extending the deadline by 30 calendar days from February 19, 2025. During this time, FinCEN will also explore options to further modify deadlines, focusing on prioritizing high-risk entities while easing the burden on lower-risk businesses, including many U.S. small businesses.

Updated BOI Reporting Deadlines

What it boils down to is that for the vast majority of reporting companies, the new deadline to file an initial, updated, and/or corrected BOI report is now March 21, 2025.

What This Means for Reporting Companies

With the BOI reporting rule back in effect, businesses must now comply with FinCEN’s filing requirements. Companies should take note of the updated deadline and prepare accordingly. FinCEN is expected to provide further updates before March 21, 2025, regarding any additional deadline modifications.

Here are the key things you should ensure:

• Monitor for Further Updates: Stay informed about any additional deadline modifications or regulatory adjustments that FinCEN may announce before March 21, 2025.
• Verify Your Reporting Obligations: Determine whether your company qualifies as a reporting entity under the CTA.
• Prepare Required Ownership Information: Gather and organize beneficial ownership details to meet FinCEN’s filing requirements.

How TaxBandits Facilitates Stress-Free BOI Reporting

For businesses that need to file BOI reports, TaxBandits offers an easy-to-use platform that streamlines the process, ensuring accurate and timely submissions.

By using TaxBandits, companies can collect necessary data and organize their reports in advance, avoiding compliance issues as deadlines approach.

Essential Features For Reporting Companies

For businesses that need to file BOI reports, TaxBandits offers an easy-to-use platform that streamlines the process, ensuring accurate and timely submissions.

By using TaxBandits, companies can collect necessary data and organize their reports in advance, avoiding compliance issues as deadlines approach.

Essential Features for All Businesses

• Comprehensive Solution: File all types of BOI reports, including Initial, Correction, Update, or Newly Exempt Entity reports in one place.
• Easy Corrections: Modify existing reports instead of starting over, ensuring quick updates and compliance.
• Invite Beneficial Owners: Send secure invitations for beneficial owners to complete their details directly.
• AI Data Extraction: Automate data entry by extracting information from uploaded identification documents.
• Record Keeping: Securely store all BOI reports and access them anytime for reference or re-submission.
• Free Retransmission: If FinCEN rejects a report due to errors, correct and resubmit it at no additional cost.

Exclusive Features for High-Volume Filers and Tax Professionals

• Bulk Upload: Use a standard CSV template to import and process multiple reports at once, reducing manual effort.
• Karbon Integration for CPAs: Manage client filings efficiently with direct integration into Karbon for streamlined workflows.
• Client Management: Provide a secure portal for each client, enabling secure collaboration, data sharing, and review/approval workflows. Also, customize and auto-fill engagement letters, request e-signatures, and update terms easily.

Stay ahead of all the compliance challenges with TaxBandits—your trusted partner in BOI reporting.