Dear Clients,
The legal roller coaster for the Corporate Transparency Act (CTA) continues, and its reporting requirement for US businesses is back in effect.
On February 18, 2025, the U.S. District Court for the Eastern District of Texas stayed its original January 7, 2025, order, which had previously suspended the enforcement of the CTA’s BOI reporting regulations.
As a result, the regulations are once again in effect, and compliance with the CTA’s Beneficial Ownership Information Reporting (BOIR) is once again MANDATORY. All for profit entities, not exempt under the CTA regulations, must submit their Beneficial Ownership Information (BOI) by March 21, 2025.
NEW INFORMATION:
Mandatory Reporting: Businesses must report their beneficial ownership information to FinCEN by the new deadline of March 21, 2025. This includes information about the individuals who ultimately own or control the entity.
Legal Status: While there are ongoing legal proceedings regarding the CTA, the current court order allows FinCEN to proceed with enforcement of the BOI reporting requirements.
Penalties for Non-Compliance: Failure to comply with the CTA’s BOI reporting requirements by the new deadline may result in significant penalties, including fines of up to $500 per day, per entity, and in the event of willful noncompliance, may result in a $10,000 fine and up to one-year in jail.
ENSURING COMPLIANCE:
If your business has not yet submitted its BOI information to FinCEN, we recommend that you take immediate steps to ensure compliance by March 21, 2025. Our office is ready and able to discuss, prepare, and file your BOI report on your behalf, ensuring that you meet the regulatory requirements and avoid any potential penalties.
Please contact us at 330-563-4149 if you have any questions or need assistance with the filing process.
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