Corporate Transparency Act Compliance: What Businesses Need to Know in 2025
As we previously advised, the reporting requirements for filing Beneficial Ownership Information (“BOI”) for both domestic and foreign reporting companies required under the Corporate Transparency Act: 31 U.S.C. 5336 (“CTA”) remain on hold pending appeals of multiple Federal lawsuits so, at the present time, no personal information regarding the members, managers, shareholder or principals of these entities needs to be filed with the US Treasury Department (“FinCEN”) until further notice.
In our ongoing efforts to bring you updates on important legislation that may affect your clients, we wanted to let you know of pending legislation, H.R.736 - Protect Small Businesses from Excessive Paperwork Act of 2025, which the House of Representatives recently passed by unanimous vote. This Bill was sponsored by Rep. Zachary Nunn of Iowa and, if fully enacted into law, will effectively delay, for one year, any BOI reporting requirements only for entities formed prior to January 1, 2024, until January 1, 2026. This proposed legislation, if enacted into law, will only become relevant if the pending appeals in the Federal cases are decided to lift or modify the current injunction that is in place which stays the CTA reporting requirements. We have provided you with a link below so that you can track the progress of H.R. 736 as it winds its way through the legislative process.
https://www.congress.gov/bill/
Additionally, while we await final decision on the Federal appeals that will ultimately decide the constitutionality of the CTA reporting requirements, we can let you know that FinCEN has stated that if the BOI reporting requirements are reinstated by decision of the Appeals Court, FinCEN would allow at least 30 days for businesses to comply with such BOI requirements from the date of the Court Order. Below is a link to the FinCEN website which includes regular updates on all pending litigation and alert notices related to the CTA.
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