FinCEN Will Not Penalize Noncompliance with Current BOI Filing Deadlines

By, John M. Goralka
Sacramento, CA

On February 27, 2025, the Financial Crimes Enforcement Network (FinCEN) issued another update regarding the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements. This announcement provides temporary relief for businesses navigating the complexities of compliance.

Key Announcement Highlights:

No Penalties for Noncompliance: FinCEN stated that it will not issue fines, penalties, or take enforcement actions against companies that fail to file or update their BOI reports by the current deadlines. This includes the March 21, 2025, deadline for most reporting companies.
Interim Final Rule Coming Soon: FinCEN plans to issue an interim final rule no later than March 21, 2025. This rule will extend BOI reporting deadlines and provide updated guidance to clarify compliance requirements.
Future Revisions to Reporting Rules: FinCEN intends to solicit public comments on potential revisions to existing BOI reporting requirements. These revisions aim to reduce the regulatory burden on small businesses while ensuring that BOI reporting remains effective for national security, intelligence, and law enforcement purposes.

What This Means for Businesses:

For now, businesses that have not yet filed or updated their BOI reports will not face penalties until the interim final rule is issued and the new deadlines take effect. However, it is essential to stay informed about upcoming changes and prepare for compliance once the new rules are in place.

Next Steps:

Stay Updated: FinCEN will release the interim final rule by March 21, 2025, and additional updates later this year. Businesses should monitor these developments closely. Visit the FinCEN website to learn more.
Prepare for Compliance: While penalties are temporarily on hold, it’s crucial to understand your BOI reporting obligations and be ready to comply with the revised deadlines and requirements.
If you have any questions or need guidance, please don’t hesitate to reach out to our team and read the Compliance Options available to you.

This update provides a temporary reprieve, but businesses should remain proactive in understanding and preparing for their BOI reporting responsibilities.

Sacramento Estate Planning, Tax Planning and Business Attorney.

I’m John Goralka, a Sacramento Estate Planning, Tax Planning and Business Attorney at the Goralka Law Firm, P.C. If you have an estate, tax or business situation needing legal help, contact our team for experienced and friendly advice. You can contact us at 916-440-8036. Alternatively, you can use our convenient online contact form here on our website. We listen, and you can have your questions answered, your case evaluated, and explore your options for getting the legal help you need.

There are almost 200,000 attorneys in the state of California, and fewer than 100 of those attorneys are State Bar Specialists in Estate Planning, Trusts and Probate and State Bar Specialists in Taxation. I am one of the few attorneys with both critical specializations. I passed the California CPA examination and am a former income tax auditor and hearing officer. I am also recognized as a top attorney in the United States by US News and World Reports and by Best Lawyers and hold an AV rating from Martindale which is the premiere rating organization for attorneys. The AV rating is the highest possible rating for legal experience and for legal ethics.

For help in Sacramento with estate planning, business planning or tax planning, please contact our office.