There has been yet another reversal of government policy affecting the enforcement of the Corporate Transparency Act (“CTA”) and its requirement for Reporting Companies to report Beneficial Owners (the “Reporting Rule”) to the Financial Crimes Enforcement Network (“FinCEN”).
On February 27, 2025, FinCEN announced that it will not enforce its previously stated filing deadline of March 21, 2025.
Recognizing the importance of minimizing burdens on American small businesses, FinCEN plans to issue an interim final rule that extends reporting deadlines and provides additional guidance and clarity no later than March 21, 2025. The interim rule will be open to public comment.
Be aware the new rule is likely to provide a substantial amount of additional time to file and may also grant new filing exceptions that could be relevant to your entities. In particular, the Treasury Department, which oversees FinCEN, has indicated that the focus of the new rule may shift to reporting by foreign entities and entities with foreign owners1.
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