Oh, BOI. This week, a federal court lifted the last remaining court injunction against the embattled Beneficial Ownership Information (BOI) rule, the Journal of Accountancy reported. That means most companies will need to file certain data about the people who own and/or control them with the Financial Crimes Enforcement Network (FinCEN).
Originally, companies formed before 2024 were required to report BOI data under the Corporate Transparency Act (CTA), an anti-money-laundering measure passed in 2021, by January 1, 2025, a date later pushed back to January 13. But that requirement was put on pause when the CTA faced a slew of legal challenges. Now, though, it’s back in force.
To comply, companies will need to provide FinCEN information including the names, birthdates, and addresses of anyone who owns or controls a 25% or larger stake in them, and anyone with “substantial control,” including senior executives. Twenty-three types of entities are exempt from the requirement.
Most companies will now need to file by March 21, FinCEN said. Companies that previously were told they could file after March 21 will still be allowed to file by those dates.
FinCEN also said it will use the time between now and March 21 to “assess its options to further modify deadlines.” It will also review the BOI reporting rule this year and look for ways to “reduce burden for lower-risk entities, including many US small businesses.”
About 14.5 million of the estimated 33 million companies that are covered by the CTA had already voluntarily filed their BOI data as of January 16.
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