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FinCEN Announces Proposal for 90-day Extension of BOIR Filing Deadline
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Breaking News – Introduction
In a recent notice from the Federal Register, dated September 28, 2023, the Financial Crimes Enforcement Network (FinCEN) has proposed amendments to the Beneficial Ownership Information (BOI) reporting rule, potentially impacting entities created or registered in 2024. This proposal seeks to extend the filing deadline for certain BOI Reports (BOIR), providing entities with additional time to comprehend and comply with their new regulatory obligations.
90 Days to File a BOI Report?
FinCEN has proposed to amend the BOI reporting rule, which currently mandates entities created or registered on or after the rule’s effective date of January 1, 2024, to file initial BOIR’s with FinCEN within 30 days of notice of their creation or registration. The proposed amendment aims to extend that filing deadline from 30 days to 90 days for entities created or registered on or after January 1, 2024, and before January 1, 2025.
The proposed extension to 90 days would apply to both domestic and foreign entities created or registered in the United States in the first year after the Reporting Rule becomes effective. However, entities created or registered on or after January 1, 2025, would adhere to the original 30-day filing requirement.
In summary:
- Proposed 90 day filing period for entities formed on 2024 Calendar year
- From January 1, 2025, the original 30-day filing requirement will resume
Purpose of Extension
The extension is intended to grant newly formed reporting companies extra time to understand and adhere to their regulatory duties under the Reporting Rule. This additional time is expected to facilitate these newly established or registered entities through various facets of the Reporting Rule, including determining whether the new legal entity is defined as a “reporting company” or is eligible for an exemption, applying the definition of “beneficial owner” under the rule, and understanding other terms and requirements.
FinCEN believes that extending the time period in the first year is appropriate due to the novelty of the beneficial ownership reporting regime created by Congress under the Corporate Transparency Act (CTA)
Stay Informed
With the strict requirements, penalties and change surrounding this requirement, are you prepared to file your BOIR?
Get informed:
- Do Reporting Companies Need to File a BOI Report?
- Are You Exempt From FinCEN’s 2024 BOI Reporting Requirement?
- FinCEN Beneficial Ownership Reporting Demands Coming in 2024: Are You Prepared?
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