Treasury delays deadline for small businesses to file new form to avoid risk of fines for noncompliance

Published On Dec 26, 2024, 1:00 PM

The U.S. Treasury has postponed the deadline for small businesses to file a Beneficial Ownership Information (BOI) report from January 1, 2025, to January 13, 2025. This change was influenced by recent legal challenges to the requirement mandated by the Corporate Transparency Act, which aims to combat illicit financial activities. The reporting requirement affects approximately 32.6 million businesses, and failure to comply could lead to hefty fines. However, many small businesses with significant revenue and employee numbers may be exempt from this reporting obligation. Few businesses have filed the report thus far, and there is a possibility that enforcement will focus more on educating businesses rather than penalizing them for noncompliance immediately.