FinCEN extends beneficial ownership deadline for some

The Treasury Department's Financial Crimes Enforcement Network said Tuesday it's extending the deadline for new reporting companies to file their initial beneficial ownership information reports. However, the extension doesn't apply to existing companies.

FinCEN said that reporting companies created or registered in 2024 will have 90 calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial reports, as opposed to the original deadline of 30 days.

For existing companies, the deadline is still set to take effect on Jan. 1, 2024.

The beneficial ownership reporting requirement was mandated by the Corporate Transparency Act of 2021. It requires corporations, LLCs and other entities formed under state law or foreign law and registered to do business in the U.S. to report their true ownership to FinCEN.

The goal is to deter money laundering, corruption, drug and human trafficking, and other illicit activity, but many companies have been unprepared to meet the new requirements, and the American Institute of CPAs and other business trade associations have been asking for a delay in the deadline for the requirements.

Samuel Corum/Bloomberg

FinCEN said the extension would give companies created or registered in 2024 more time to become familiar with its guidance and educational materials at https://www.fincen.gov/boi, and to resolve questions that may arise in the process of completing their initial BOI reports. 

Companies created or registered before Jan. 1, 2024, will have until Jan. 1, 2025, to file their initial BOI reports with FinCEN, while those created or registered on or after Jan. 1, 2025, will have 30 calendar days to file their initial BOI reports after receiving actual or public notice of their creation or registration becoming effective.

FinCEN said it will not accept BOI reports from reporting companies until Jan. 1, 2024, so no reports should be submitted before then.