**Update 02/24/25*** New filing date has been set for March 21, 2025
Small-business owners are once again required to file a beneficial ownership information (BOI) report, with the deadline expected to be reset to 30 days.
On February 17, a federal district court judge in Texas lifted the pause on the Corporate Transparency Act (CTA) as the Department of Treasury continues its appeal in the Smith v. Treasury Department case. This decision effectively reinstates the BOI reporting requirement.
As of February 18, the Financial Crimes Enforcement Network (FinCEN) had not yet issued updated guidance following the court’s decision. However, in court documents filed earlier this month, FinCEN indicated plans to set a new BOI filing deadline of 30 days after the court ruling. During this 30-day extension, FinCEN will consider revising the CTA’s BOI reporting requirements to reduce the burden on low-risk entities while focusing enforcement efforts on addressing significant risks to U.S. national security.
It remains unclear which businesses may qualify as low-risk. A Treasury Department official stated that exploring changes to the requirements aligns with the department’s goal of minimizing regulatory burdens on businesses. With the injunction in the Smith case lifted, attention has shifted to a related case filed by Texas Top Cop Shop. In December, a judge in that case issued the first nationwide injunction, halting BOI reporting just weeks before the January 1 deadline.
In late January, the Supreme Court lifted the CTA injunction while the Texas Top Cop Shop appeal continues. However, the Smith injunction remained in place, keeping BOI reporting on hold. Now that the Smith injunction has been lifted, small-business owners must wait for the Fifth Circuit Court of Appeals to rule on the Texas Top Cop Shop case, with oral arguments scheduled for April 1.
In the meantime, businesses can file their BOI reports at FinCEN.gov/boi. Filing directly through FinCEN’s website is free. The BOI filing requirement applies only to small businesses with fewer than 20 employees that are incorporated. Sole proprietorships and partnerships that are not incorporated are exempt.
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