By Eric J. Sachtjen, Shareholder
On February 27, 2025, the Financial Crimes Enforcement Network (FinCEN) announced that it will not impose fines, penalties, or other enforcement actions against companies for failing to file or update Beneficial Ownership Information (BOI) reports by the current deadlines under the Corporate Transparency Act (CTA).
This decision follows ongoing litigation and uncertainty surrounding the CTA’s reporting requirements, which mandate that certain businesses disclose their beneficial owners to combat financial crimes. Despite a recent court ruling reinstating the requirements with a deadline of March 21, 2025, FinCEN’s statement provides temporary relief to the estimated 32 million affected entities. The agency emphasized its commitment to supporting compliance while assessing potential adjustments to the reporting rules to reduce burdens on businesses, particularly lower-risk ones, with further updates expected before the March deadline. Companies are still encouraged to file voluntarily.
While this informational publication is about legal issues, it is not legal advice. Legal information is not the same as legal advice and is not a sufficient substitute for or replace the advice or representation of a licensed attorney. If you desire an interpretation of any of the legal principles addressed herein, we recommend you consult with a licensed attorney.
Paine Hamblen, P.S. is a full-service law firm, based in Spokane, Washington, and can assist you with choosing the right business structure, complying with applicable laws and regulations, drafting and reviewing contracts, mitigating risks and liabilities, and navigating the complexities of employment and labor laws. For assistance with a particular business challenge you may be facing, call us at 509-455-6000.
Eric J. Sachtjen is a Shareholder at Paine Hamblen, PS whose practice includes in tax compliance, estate planning, and business advisory services.
