Treasury again delays the beneficial ownership reporting deadline for small businesses

Published On Dec 30, 2024, 11:23 AM

The U.S. Treasury has delayed the reporting deadline for small businesses to submit beneficial ownership information, which was originally due on January 13, 2025. This decision follows a court order from the 5th U.S. Circuit Court of Appeals temporarily halting enforcement of the reporting requirement while it reviews the constitutionality of the legislation behind it. Consequently, businesses are not required to file reports or face penalties until at least March 2025, which may lead to uncertainty in compliance among small businesses across the country.

Stock Forecasts

IWM

Positive

The postponement of the beneficial ownership reporting requirement reduces immediate regulatory burdens on small businesses, likely improving operational conditions in the short term. Investors may view this as positive for small-cap stocks, particularly those with substantial ownership structure documentation responsibilities.

Related News

Here's why the S&P 500 is on track to rise more than 20% in two consecutive years for the first time since the late 1990s.

QQQ
IWM
SPY

The Treasury delayed a Jan. 1 deadline to file a new "beneficial ownership information" report to Jan. 13 following a recent court order.

The Corporate Transparency Act requires many businesses to file data about their "beneficial owners" by Jan. 1. But the rule is being challenged in court.