On March 21, 2025, FinCEN posted the following press release on its website concerning changes to Beneficial Ownership Reporting under the Corporate Transparency Act:
WASHINGTON––Consistent with the U.S. Department of the Treasury’s March 2, 2025 announcement, the Financial Crimes Enforcement Network (FinCEN) is issuing an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act.
In that interim final rule, FinCEN revises the definition of “reporting company” in its implementing regulations to mean only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office (formerly known as “foreign reporting companies”). FinCEN also exempts entities previously known as “domestic reporting companies” from BOI reporting requirements.
Thus, through this interim final rule, all entities created in the United States — including those previously known as “domestic reporting companies” — and their beneficial owners will be exempt from the requirement to report BOI to FinCEN. Foreign entities that meet the new definition of a “reporting company” and do not qualify for an exemption from the reporting requirements must report their BOI to FinCEN under new deadlines, detailed below. These foreign entities, however, will not be required to report any U.S. persons as beneficial owners, and U.S. persons will not be required to report BOI with respect to any such entity for which they are a beneficial owner.
Upon the publication of the interim final rule, the following deadlines apply for foreign entities that are reporting companies:
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- Reporting companies registered to do business in the United States before the date of publication of the IFR must file BOI reports no later than 30 days from that date.
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- Reporting companies registered to do business in the United States on or after the date of publication of the IFR have 30 calendar days to file an initial BOI report after receiving notice that their registration is effective.
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FinCEN is accepting comments on this interim final rule and intends to finalize the rule this year.
For a summary of the previous back-and-forth court orders and administrative announcements, please refer to our Mar. 3 article.
We understand that this information may be important to many of our clients. As we have indicated previously, BOI reporting obligations are outside the purview of services that CBIZ is authorized to provide. This article is not intended to provide any legal advice. We encourage you to contact your legal counsel to ascertain whether your company will be subject to BOI reporting obligations and how this latest development will affect your company.
If we can provide further clarification on these matters, please connect with us.
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