Treasury delays deadline for small businesses to file new BOI form
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Janet Yellen, U.S. Treasury secretary, on a tour of the Financial Crimes Enforcement Network (FinCEN) in Vienna, Virginia, on Jan. 8, 2024. Valerie Plesch/Bloomberg via Getty Images The U.S. Treasury Department has delayed the deadline for millions of small businesses to Jan. 13, 2025, to file a new form, known as a Beneficial Ownership Information report. The Treasury had initially required many businesses to file the report to the agency’s Financial Crimes Enforcement Network, known as FinCEN, by Jan. 1. Noncompliance carries potential fines that could exceed $10,000. This delay comes as a result of legal challenges to the new reporting requirement under the Corporate Transparency Act. The rule applies to about 32.6 million businesses, including certain corporations, limited liability companies and others, according to federal estimates. Businesses and owners that didn’t comply would potentially face civil penalties of up to $591 a day, adjusted for inflation, according to FinCEN. They could also face up to $10,000 in criminal fines and up to two years in prison. However, many small businesses are exempt. For example, those with over $5 million in gross sales and more than 20 full-time employees may not need to file a report. Why Treasury delayed the BOI reporting requirement The Treasury delayed the compliance deadline following a recent court ruling. A federal court in Texas on Dec. 3 had issued a nationwide preliminary injunction that temporarily blocked FinCEN from enforcing the rule. However, the 5th U.S. Circuit Court of Appeals reversed that injunction on Monday. “Because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, we have extended the reporting deadline,” according to the FinCEN website. FinCEN didn’t return a request from CNBC for comment about the number of businesses that…
Filed under: News - @ December 26, 2024 6:21 pm