Is the government hard of hearing?
Business likes certainty. Apparently, the government heard that as business likes uncertainty. So, although, as I’ll mention in a moment, mandatory BOI reporting under the Corporate Transparency Act is now back on, it might not be for long.
The immediately prior nationwide injunction against mandatory BOI reporting, in place in connection with a case known as Smith v. United States Department of Treasury, was lifted earlier this week. The deadline for BOI reporting to FinCEN is now March 21, 2025.
However, two things seem to make waiting until closer to that deadline attractive:
1. FinCEN says that it will revise the BOI reporting rule this year to reduce the burden for lower-risk entities. I have no idea whether that will occur prior to March 21 or what their revisions might be, but you might want to take that into account in terms of how long you’re going to wait to file.
2. The House passed the “Protect Small Businesses from Excessive Paperwork Act of 2025” which grants a one-year delay — to January 1, 2026 — for businesses formed before January 1, 2024, to file BOIRs. But that’s not law yet – the bill would have to be passed by the Senate and signed into law by the President to become effective. If that were to occur prior to March 21, then BOIR filing would be on hold for qualifying entities until the first of next year.
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