FinCEN hints at BOI reporting changes in court filing

By Martha Waggoner, Journal of Accountancy

The Financial Crimes Enforcement Network (FinCEN) will consider changes to the beneficial ownership information (BOI) requirements if a court grants the government request for a stay of a nationwide injunction in a Texas case, according to a motion filed Wednesday.

FinCEN will extend BOI filing deadlines for 30 days, the government said in its filing in Samantha Smith and Robert Means v. U.S. Department of the Treasury, No. 6:24-CV-336 (E.D. Texas 1/7/25).

"During that period, FinCEN will assess whether it is appropriate to modify the CTA's reporting requirements to alleviate the burden on low-risk entities while prioritizing enforcement to address the most significant risks to U.S. national security. Staying the grant of preliminary relief will help facilitate that process," said the request from the Department of Justice.

FinCEN has not updated its website with further details.

In a LinkedIn post, Melanie Lauridsen, the AICPA's vice president–Tax Policy & Advocacy, said, "We are encouraged by FinCEN's intention to provide a 30-day filing extension for the BOI report in the event the injunction is lifted; however, we urge FinCEN to consider a longer extension period to appropriately account for the lack of awareness and confusion around the filing status."

"The AICPA continues to maintain its advice that those assisting clients with BOI report filings gather the required information from clients and be prepared to file the BOI report if the injunction is lifted again," Lauridsen's post continued.

FinCEN estimates that the Corporate Transparency Act, P.L. 116-283, which includes the BOI reporting requirements, covers 32 million small businesses.

This is a developing story. Check back for updates.

Background

Under the CTA, which Congress passed in 2021 as an anti-money-laundering initiative, reporting companies must disclose the identity and information about beneficial owners of the entities. For new entities incorporated after Jan. 1, 2024, reporting companies must also disclose the identity of "company applicants" — defined as any individual who files an application to form a corporation, limited liability company, or other similar entity.

Most reports were originally due by the start of 2025; however, FinCEN pushed that date to Jan. 13, a deadline that the injunction made null.

Willful violations are punishable by a fine of $591 a day, up to $10,000, and two years in prison with similarly serious penalties for unauthorized disclosure.

AICPA advocacy

The AICPA and state CPA societies have written numerous letters to Congress and FinCEN, urging a delay in the reporting deadline.

The AICPA regularly updates its BOI reporting resource center.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.