There are two recent developments regarding Beneficial Ownership Information (BOI) reporting: a recent court decision lifted the injunction on the reporting; and the House passed a bill extending the reporting requirement to January 1, 2026.
Reporting requirement is back on – for now.
On February 18, 2025, the U.S. District Court for the Eastern District of Texas lifted a previous stay on the Corporate Transparency Act’s (CTA) BOI reporting requirements, reinstating the obligation for companies to report their beneficial owners. In response, the Financial Crimes Enforcement Network (FinCEN) has extended the reporting deadline by 30 days from February 19, 2025, making the new due date March 21, 2025, for most companies. At the same time, FinCEN announced that it plans to introduce further amendments to the reporting requirements to reduce the burden on low-risk entities, such as U.S. small businesses, details will be released at a later stage.
Additional legislative advancements might further delay the reporting requirements.
Protect Small Businesses From Excessive Paperwork Act
The Protect Small Businesses from Excessive Paperwork Act of 2025 (H.R. 736) was introduced in the House on January 24, 2025; it has bipartisan support. This bill aims to modify the deadline for filing beneficial ownership information reports for companies formed or registered before January 1, 2024. Specifically, it extends the reporting deadline for these entities to January 1, 2026. This means that companies would have an additional year to comply with the requirements beyond the original requirement. The House passed the bill on February 10, 2025, with a unanimous vote of 408-0. It is currently under consideration by the Senate Committee on Banking, Housing, and Urban Affairs.
Given the above, it is likely that the deadlines and the reporting requirements will undergo substantial changes in the near future.
