Are the Mammoth Reporting Obligations Heading Back to the Ice Ages?
The Corporate Transparency Act (“CTA”) requires most small businesses in Colorado to file beneficial ownership information (“BOI”) reports with the U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”). The filing deadlines vary depending upon when a business is formed and whether changes to previous reports are necessary, with one filing deadline fast approaching on March 21, 2025.
On March 2, 2025, the Treasury Department announced that it will not enforce any penalties or fines under the existing filing deadlines with respect to the CTA’s mammoth reporting obligations. The Treasury Department also said that it will be issuing new rules to narrow the scope of the CTA to foreign reporting companies only. If the CTA is narrowed, the Treasury Department has not said what it will do with the thousands of BOI reports that have already been filed by domestic reporting companies.
You can read the Treasury Department’s announcement here:
The announcement follows a similar release by FinCEN on February 27, 2025:
The Treasury Department’s big chill does not put an end to the matter. The filing deadlines have not been lifted or extended – yet. And just as the Treasury Department, through FinCEN, is considering ways to narrow the CTA’s scope, the agency and Congress are considering further extensions of the BOI reporting deadlines. In addition, there are at least 15 cases pending in federal court challenging the constitutionality of the CTA.
In the circumstances, we suggest that small businesses consult with legal counsel regarding whether to file BOI reports on or before the current deadlines.
For background, helpful reference materials, and future alerts concerning the law and its enforcement, refer to FinCEN’s official CTA website at https://fincen.gov/boi.