The US Financial Crimes Enforcement Network (FinCEN) has proposed a deadline extension for certain companies to comply with the Corporate Transparency Act (CTA) and report their beneficial ownership information from 30 days to 90 days.
As of January 1, 2024, entities created or registered to do business in the US will need to file beneficial ownership reports with FinCEN unless they are subject to one of 23 enumerated exemptions.
Currently, the rule contemplates that reporting companies created or registered to do business in the United States on or after January 1, 2024 must file their initial BOI reports within 30 days.
On September 28, FinCEN issued a Notice of Proposed Rulemaking (NPRM) that would extend that deadline from 30 days to 90 days for companies created or registered to do business in the United States between January 1, 2024 and December 31, 2024. Entities created on or after January 1, 2025 would still be required to file their reports within 30 days.
FinCEN director Andrea Gacki said: "FinCEN remains committed to developing a beneficial ownership database that is highly useful to law enforcement and national security agencies, while at the same time minimizing burdens on reporting companies to the greatest extent possible.
"We anticipate that the proposed extension of the BOI reporting deadline for the first year of implementation will increase compliance, reduce burden on reporting companies, and promote the creation of a highly useful database."
FinCEN will be accepting written comments on the NPRM until October 30, 2023. In the meantime, companies should consider whether they will be required to report their BOI and, if so, begin gathering documentation to ensure they are well positioned to timely and accurately file their initial BOI report and amend as necessary.
