They’re back! FinCEN Beneficial Ownership Information reporting (BOIR) requirements under the Corporate Transparency Act (CTA) are once again back in effect. The catalyst in this very long-running back-and-forth was the February 18, 2025, decision of the U.S. District Court for the Eastern District Court of Texas, in Smith, et al. v. U.S. Department of the Treasury, lifting its January 7, 2025, order that had put a nationwide hold on BOIR requirements. The February 18 order will remain in effect while the case is on appeal for a decision by the U.S. Court of Appeals for the Fifth Circuit.

FinCEN subsequently issued a Notice “generally extending the BOIR filing deadline for most companies until March 21, 2025. The Notice left open the possibility that FinCEN may need to provide additional time for companies to satisfy their BOIR requirements, beyond the current March 21, 2025, deadline. NOTE, however, that there was no promise from FinCEN of additional time for BOIR filing.

So, subject to any further applicable court orders, BOIR filing under the CTA is now mandatory, and BOIR filing must be completed by reporting companies by no later than March 21, 2025. While there is still a possibility that there could be other or further actions that stay the new BOIR filing deadline, including a move by the House of Representatives to extend BOIR filing requirements until January 1, 2026, we strongly recommend that all reporting companies ramp up their efforts to get those filings done by no later than March 21, 2025.  Unless and until Congress or a court decides otherwise, March 21, 2025, is the BOIR filing deadline to avoid hefty civil penalties under the CTA.

We will continue to provide you with updates regarding the status of the CTA and its reporting requirements. If you have questions about the CTA’s requirements or just want to ensure your business is on the right track, please feel free to reach out to Timothy Hughes, at (703) 526-5582 or thughes@beankinney.com, or Doug Taylor, at rdougtaylor@beankinney.com or (703) 525-4000. Our firm practices in Virginia, Maryland, and the District of Columbia in addition to various other jurisdictions and can help you through this process.

This article is for informational purposes only and does not contain or convey legal advice. Consult a lawyer. Any views or opinions expressed herein are those of the authors and are not necessarily the views of any client.