TaxBandits Knowledge Base

What is the latest update regarding BOI reporting requirements?

?On March 21, 2025, the FinCEN issued an interim final rule that significantly changes the BOI reporting requirements under the Corporate Transparency Act (CTA). This rule removes the obligation for U.S. companies and U.S. persons to report their beneficial ownership information to FinCEN. Consequently, domestic reporting companies and U.S. individuals are no longer required to submit BOI reports, and FinCEN will not impose penalties or fines on them for non-compliance.

However, certain foreign entities still have reporting obligations. Specifically, a foreign reporting company is defined as an entity formed under the laws of a foreign country that has registered to do business in the U.S. by filing with a state or tribal office. These foreign entities must continue to report their beneficial ownership information to FinCEN. ?

FinCEN has also established new deadlines for these foreign reporting companies:?

• Foreign entities registered before the interim final rule's publication must submit their BOI reports within 30 days from the publication date.?
   
• Foreign entities registering on or after the publication date have 30 calendar days from the effective date of their registration to file an initial BOI report. ?
   

These updates aim to alleviate compliance burdens for U.S. businesses while maintaining transparency requirements for certain foreign entities operating within the United States.