The Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM) to extend the deadline for certain reporting companies to file their beneficial ownership information (BOI) reports.
FinCEN is proposing to amend its final BOI Reporting Rule to provide 90 days for reporting companies created or registered in 2024 to file their initial reports, instead of 30 days. The proposed rule would not make any other changes to the final BOI Reporting Rule: reporting companies created or registered before Jan. 1, 2024, would have until Jan. 1, 2025, to file their initial BOI reports with FinCEN, and entities created or registered on or after Jan. 1, 2025, would have 30 days.
“FinCEN remains committed to developing a beneficial ownership database that is highly useful to law enforcement and national security agencies, while at the same time minimizing burdens on reporting companies to the greatest extent possible,” FinCEN Director Andrea Gacki said. “We anticipate that the proposed extension of the BOI reporting deadline for the first year of implementation will increase compliance, reduce burden on reporting companies, and promote the creation of a highly useful database.”
In its release announcing the proposal, FinCEN stated it believes the proposed extension will have significant benefits. An extension will give reporting companies created or registered in 2024 additional time to understand their regulatory obligations under the Reporting Rule and obtain the required information. They will also have additional time to become familiar with FinCEN’s guidance and educational materials located at www.fincen.gov/boi and resolve questions that may arise in the process of completing their initial BOI reports.
After Jan. 1, 2025, however, reporting companies should be familiar with BOI reporting requirements and be in a better position to file required BOI reports on a timely basis.
Interested parties may submit written comments on the NPRM by Oct. 30.