The BOI Deadline 2025 had been reinstated in light of the order given by the Fifth Circuit Court of Appeals to lift the injunction that had prevented the enforcement of the Corporate Transparency Act.
Currently, the company shall file the BOI reports no later than January 1, 2025. However, a few key updates on the deadlines have changed the compliance timelines.
New BOI Deadline
Most notably, FinCEN extended the BOI deadline for reporting companies to file their BOI reports until January 13, 2025. This extension gave all reporting companies further time to comply with the reporting requirements promulgated by the CTA.
Thus, for companies formed or registered on or after January 1, 2024, the date by which such entities will have to file their initial reports is extended by 90 calendar days from the date of creation or registration.
Legal Environment and Continuing Litigation
The Fifth Circuit Court issued its decision after the Department of Justice appealed a December 3 district court decision that issued an injunction against enforcement of the CTA. The case Texas Top Cop Shop, Inc. v. Garland had enormous implications for compliance requirements going forward.
The circuit court noted that “the government has made a strong showing that it is likely to succeed on the merits in defending CTA’s constitutionality.” Based on this, the court granted a Department of Justice motion to lift the injunction put in place by the district court.
Legislative Efforts and Proposed BOI Deadline Delays
Organizations including the AICPA and state CPA societies have actively advocated for the deferral of the effective date of the BOI reporting requirement. A one-year extension was attached to an initial draft of a continuing resolution designed to avoid a government shutdown but the measure was absent in the bill adopted by Congress.
Despite such efforts, the AIC bookkeeping association’s vice president of Tax Policy & Advocacy, Melanie Lauridsen, said companies should still be working toward meeting the January 1, 2025 date unless and until such time as further changes are made.
Implications for Businesses
For businesses formed before January 1, 2024, BOI reports should be filed by January 13, 2025. For companies which have been formed from January 1, 2024, and January 1, 2025, this has to be done within 90 days of formation. Companies in existence from January 1, 2025, going forward will have to file in 30 days of their formation.
Conclusion
With the BOI Deadline of 2025, companies would be better off being well-versed in what they are supposed to report on under the Corporate Transparency Act. The just-announced extension up to January 13 conveys partial relief and makes quick compliance necessary. Organizations, therefore, have a compelling need to make an analysis of the collection of required details with respect to the substantial beneficiary owners, keeping awareness relevant to any further changes in legislation that impacts the BOI Deadline or even the reporting requirements.