What’s happening now with the Corporate Transparency Act (CTA)?

As of February 18, 2025 Beneficial Owner Information Reports are once again mandatory and a new deadline has been given of March 21, 2025, for most non-exempt Reporting Companies to file their Beneficial Owner Information Reports with FinCEN, in order to avoid potential civil and criminal penalties for non-compliance with the Reporting Rule of the Corporate Transparency Act (CTA).

Below is the official Notification from FinCEN’s Website

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Official FinCEN Notification

“On February 18, 2025, the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.), decided that the Beneficial Ownership Information (BOI) reporting requirements under Reporting Rule of the Corporate Transparency Act (CTA) are once again back in effect.

The Department of the Treasury recognizes that reporting companies may need additional time to comply with their BOI reporting obligations, FinCEN is generally extending the deadline 30 calendar days from February 19, 2025, for most companies.

Notably, in keeping with Treasury’s commitment to reducing regulatory burden on businesses, during this 30-day period FinCEN will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks.

FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.

Updated Deadlines

• 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. FinCEN will provide an update before then of any further modification of this deadline, recognizing that reporting companies may need additional time to comply with their BOI reporting obligations once this update is provided.
• Reporting companies that were previously given a reporting deadline later than the March 21, 2025 deadline must file their initial BOI report by that later deadline. For example, if a company’s reporting deadline is in April 2025 because it qualifies for certain disaster relief extensions, it should follow the April deadline, not the March deadline.
• As indicated in the alert titled “Notice Regarding National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)”, Plaintiffs in National Small Business United v. Yellen, No. 5:22-cv01448 (N.D. Ala.)—namely, Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024)—are not currently required to report their beneficial ownership information to FinCEN at this time.
• For updates on other litigation related to the Corporate Transparency Act and its effect on reporting requirements for certain plaintiffs, see alerts below.

For more information, see FinCEN Notice, FIN-2025-CTA1, FinCEN Extends Beneficial Ownership Information Reporting Deadline by 30 Days; Announces Intention to Revise Reporting Rule (February 18, 2025).

Reporting companies can report their beneficial ownership information directly to FinCEN, free of charge, using FinCEN’s E-Filing system available at https://boiefiling.fincen.gov. More information is available at fincen.gov/boi.” (United States Treasury, Financial Crimes and Enforcement Network; www.fincen.gov.)

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Unincorporated Homeowners Associations and Condominium Association of Unit Owners in Hawaii

This recent decision by the US District Court of Eastern Texas has not answered the question, of whether an unincorporated Homeowners Association, such as a Maui Condominium Association of Unit Owners, qualifies as a Reporting Company under the CTA, which is still to be determined by FinCEN and the Courts.

Why hire an Attorney to deal with the Corporate Transparency Act?

An Attorney would be able to assist you with the process of gathering all the correct information, which can take time, and if needed, advising your Reporting Company on how to file out its BOI report correctly and in a timely fashion, before the updated deadline of March 21, 2025.

Need assistance or have any questions about the Corporate Transparency Act? We’re here to help!

UPCOUNTRY LAW is here to help you every step of the way, with experienced counsel.

TO GET STARTED call UPCOUNTRY LAW at (808) 419-6662, or use our handy CONTACT FORM to begin the process.

***NOTE: this article, advertisement, and website is for general information purposes only and should not be considered as legal advice or does not create an Attorney-Client relationship with UPCOUNTRY LAW or with Attorney Garrett J. Eden, Esq.