After a temporary halt in the requirement to submit beneficial ownership information reports (BOIR) to the federal government, FinCEN has announced that the reporting obligations under the Corporate Transparency Act (CTA) are again mandatory.
What Does This Mean for Business Owners?
On February 18, 2025, the U.S. District Court for the Eastern District of Texas ruled to reinstate the BOIR requirement. In response, FinCEN has set a March 21, 2025, deadline for most companies to file their initial BOIR if they haven’t already done so. Likewise, existing reporting companies with changes in their beneficial ownership information or mistakes in their previously submitted BOIR have until the March 21, 2025, deadline to update or correct their BOI report.
BOIR Due Dates
The on-again-off-again BOI rollercoaster and evolving due dates have created confusion across the business community. To help bring some clarity, here’s a chart to break down the latest deadline schedule:
| Existing Businesses | New Businesses | |
|---|---|---|
| Description | Existing reporting companies created or registered on or before February 18, 2025, to do business in the U.S. | New reporting companies created or registered after February 18, 2025, to do business in the U.S. |
| Due Date | March 21, 2025* | 30 days from business formation/registration |
Any reporting company granted a deadline later than March 21, 2025—e.g., if it qualifies for a disaster relief extension— has until that later deadline to issue its report. Also, reporting companies ruled to be not subject to BOIR (i.e., the National Small Business Association and its members and entities for which Isaac Winkles is the beneficial owner or applicant)—remain exempt at this time.
Entities formed after February 18, 2025, have 30 days to issue an updated or corrected BOI report if their beneficial ownership information changes or they detect an error on their previously submitted report.
The Penalties Remain Big for Not Filing on Time
One thing that hasn’t changed is how risky it can be to miss your BOIR deadline. With a substantial civil penalty of $606 per day, criminal fines up to $10,000, and up to two years in prison for failing to submit a BOI report (if you’re required to do so), the consequences of non-compliance could prove devastating for your business.
Companies that qualify as reporting companies and don’t meet any of the exemption criteria potentially have a lot to lose by ignoring this critical filing.
If you’re unsure about whether your company is required to file a BOI report or the specific information you must include, consider consulting your attorney or accountant.
CorpNet Can Help
We know BOI reporting can be confusing and a hassle. Let us prepare and file your report so you can avoid the costly fines, penalties, and criminal charges associated with non-compliance.
