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Dec 2024
BOI Reporting Deadline Extension Proposed in House Budget Bill
Good news for small businesses: The deadline for filing Beneficial Ownership Information (BOI) reports might be extended by a year. The House of Representatives has proposed a continuing resolution that includes this extension, pushing the deadline from January 1, 2025, to January 1, 2026, for companies formed or registered before January 1, 2024.
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This 1,500-page funding bill, aimed at preventing a government shutdown by extending funding through to March 14, 2025, is up for a vote soon. Section 122 of the document specifically addresses this extension, amending the existing law to reflect the new deadline.
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AICPA’s Role in Advocacy
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Melanie Lauridsen, Vice President of Tax Policy & Advocacy at the AICPA, celebrated this move in a LinkedIn post, noting it as a long-fought victory. The AICPA, along with state CPA societies, has been actively advocating for this delay, sending numerous letters to both Congress and the Financial Crimes Enforcement Network (FinCEN). The AICPA has even updated its BOI reporting resource center to reflect this potential change, indicating their ongoing commitment to supporting small businesses through this legislative process.
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Lauridsen expressed optimism in a statement, hoping that Congress would continue to support the small business community by making this extension official.
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Background on BOI Reporting
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The Corporate Transparency Act (CTA) was enacted in 2021 to curb money laundering by requiring companies to report details about their beneficial owners. For companies formed after January 1, 2024, this also includes reporting on “applicants” who file the formation documents.
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However, the BOI reporting rules have faced legal challenges. A recent case in Texas resulted in a preliminary injunction that temporarily halts the enforcement of these rules nationwide. This means, under the current injunction, companies do not have to meet the January 1, 2025, deadline until further notice from the court. The Department of Justice is seeking a stay on this injunction, with a decision expected by December 27, to clarify obligations for companies.
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What This Means for You
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If you’re running a business, keep an eye on this development. This extension could provide much-needed breathing room to comply with these new reporting requirements without the immediate pressure of imminent deadlines. Stay updated through official channels and advocacy groups like the AICPA for the latest on this legislative and judicial journey. Keep prepared, and stay informed.
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(This is Blog Post #1671)