What It Means for Small Businesses
BOI Reporting – If you have been following along with this saga you have seen us attempt to keep you updated along the way with our previous posts:
BOI Report Requirements: New 2024 Businesses and Rentals (12/23), Do I Need a BOI for My LLC? Plus 12 More Answers to BOI Questions (2/24), BOI Reporting Deemed Unconstitutional for Some (5/24), Do You Need To File A BOI Report? (9/24)
And today’s post: BOI Reporting Suspended for U.S. Companies
Big news for small business owners: The U.S. Treasury Department has announced that most U.S. corporations, LLCs, and other domestic entities are no longer required to file Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act (CTA). This decision effectively lifts the filing burden off of more than 32 million U.S.-based reporting companies.
The CTA was designed to help law enforcement combat financial crimes like money laundering and drug trafficking by requiring businesses to disclose the individuals who own or control them. But after legal challenges and growing concern from business owners, the Treasury has now walked back enforcement—at least for U.S. companies.
What Changed with BOI Reporting?
As of March 2, 2025, the Treasury Department stated that it will not enforce CTA penalties on U.S. citizens, domestic corporations, LLCs, or their beneficial owners who fail to file BOI reports. FinCEN, the Financial Crimes Enforcement Network, confirmed this with a press release and a revised interim rule.
This means that the March 21, 2025, BOI filing deadline no longer applies to domestic companies. U.S. reporting companies and individuals are also no longer required to update previously filed BOI reports.
Foreign Companies Still Required to Report
Entities formed in other countries but registered to do business in the U.S.—such as a Canadian company registered in California—are still required to file BOI reports. However, the deadline for foreign companies has been extended to April 25, 2025.
The interim rule also exempts U.S. individuals from reporting as beneficial owners of foreign entities, relieving them from supplying their information to foreign companies under this regulation.
What About Reports Already Filed?
Roughly 10 million BOI reports have already been submitted by U.S. companies. It’s currently unclear whether this data will be destroyed or maintained for future law enforcement use. However, those who have filed are no longer required to update their reports if ownership or control changes.
Could This Change Again?
Yes. While the current administration has deprioritized enforcement of the CTA for U.S. companies, court challenges are ongoing. Several federal courts have declared the law unconstitutional, and these cases are likely to continue through the appellate process. Future administrations may choose to revive CTA enforcement, so this could be a temporary pause—not a permanent solution.
What Should Small Business Owners Do?
If you own a corporation or LLC in the U.S., you’re off the hook—for now. But staying informed and proactive is still important. At Ken-Mar Tax, we work with small business owners to ensure they meet all IRS and Treasury compliance rules—without overcomplicating things.
➡️ Learn more about tax strategies for small businesses
➡️ Or explore our tax planning services to stay ahead of future rule changes.
Takeaways
- Domestic companies are no longer required to file or update BOI reports as of April 2025.
- The March 21 deadline is no longer in effect for U.S. reporting companies.
- Foreign companies registered in the U.S. still need to file by April 25, 2025.
- Legal challenges continue, and future administrations may reinstate reporting requirements.
Questions about your business’s filing obligations or compliance strategies?
Schedule a free consultation with Ken-Mar Tax and let us help you “Think Outside the Block.”
Contact Us
If you’ve been frustrated dealing with the IRS, or you just don’t want to deal with the IRS, contact Ken Weinberg to explain your situation and find out what Ken-Mar Tax would charge to handle your situation and avoid dealing with the IRS all together.
- If you have back taxes and want to know the timeline and/or costs to get your back taxes resolved
- If you own a small business and want to discuss tax reduction strategies for the self-employed
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Contact Ken Weinberg to learn more about our small business tax consultant services and set up a free consultation by filling out the form on this page.
