The requirement to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) is now not to be actively enforced or fined per recent announcements from the US Treasury and FinCEN.
Background
The Corporate Transparency Act requires most small businesses to file a report on FinCEN.gov to report their owners with confirmed identification, or face substantial fines and penalties. There are approximately 20 exceptions to this rule, but basically if you filed business organizational documents with a state entity you probably need to file the form.
Almost as soon as the law was enacted, it began facing numerous legal challenges. The filing deadline was delayed, then re-enacted, then delayed again. Those supporting the rule believe the filings will help law enforcement more readily identify fake companies and bad players. Those against the requirement consider it government overreach and believe the information can be found elsewhere.
Current Situation
Both FinCEN and the Treasury Department say they will no longer enforce the law, nor impose penalties for any firm that does not meet the current March 21st filing deadline. Does this mean the law is dead? Not technically, as the law is not rescinded. It is just not being enforced.
What to do now
- If you have not filed your BOI form at www.fincen.gov, you will not be penalized or forced to do so at this time.
- If you wish to file your report, the site is still available and your report may be filed.
- Since the law is still in place, the requirements, penalties and fines may be reinstated. The likelihood of this happening during the current administration is remote at best.
- FinCEN will still be modifying requirements to try and identify questionable businesses, so there may be announcements in the future.
If you are interested, here is a link to the announcement from the Treasury Department.