Corporate Transparency Act deadline extended as injunction lifted

Business owners impacted by the Corporate Transparency Act have a new compliance deadline after an injunction blocking the law was lifted.

The U.S. Treasury Department’s Financial Crimes Enforcement Network indicates on its website that a Feb. 18 decision by the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., reinstates beneficial ownership information reporting requirements under the CTA. The provision requires reporting by most small businesses of beneficial ownership information, with civil penalties to penalize those who do not comply.

"However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply with their BOI reporting obligations, FinCEN is generally extending the deadline 30 calendar days from February 19, 2025, for most companies," the FinCEN website notice reads. "Notably, in keeping with Treasury’s commitment to reducing regulatory burden on businesses, during this 30-day period FinCEN will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks."

The new deadline is now March 21.

Information on the CTA posted by Forvis Mazars LLP indicates that the U.S. House of Representatives on Feb. 10 passed a measure called the Protect Small Business from Excessive Paperwork Act of 2025 that would delay BOI reporting to Jan. 1, 2026. It has not yet been considered in the Senate.

"The CTA reporting rules are not issued under the Internal Revenue Code; therefore, we recommend reporting companies contact legal counsel for assistance," Forvis Mazars officials said in the website notice.