The Treasury Department announced that it will not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing Corporate Transparency Act regulatory deadlines.
The Treasury Department will be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury explained “this step [is] in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.” Accordingly, the Treasury Department will not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect.
Therefore, while the March 21, 2025, deadline remains a part of the law, the agency responsible for enforcing such deadline has announced that it will not penalize or fine any company that files 1) after this deadline or 2) decides to not file a BOI Report at all.
However, for new entity formations, K&C has an obligation to file with FinCEN as the Company Applicant(s) within 30 days of the date of formation and we will file a BOI report for such entities regardless of the Treasury Department’s announcement. Therefore, before formation of the new entity, copies of Driver’s License for each beneficial owner (officers, directors, managers, members and/or shareholders holding 25% or more) are required as well as confirmation of home addresses.
