The U.S. Department of the Treasury announced Feb. 27 that it won’t enforce penalties or fines against companies that fail to file or update their Beneficial Ownership Information reports.
A federal court on Feb. 18 reinstated the Corporate Transparency Act and its Beneficial Ownership Information reporting requirement.
Following the court ruling, the Treasury set a March 21 deadline for businesses to comply or risk fines of up to $591 a day.
Now, the Treasury said it won’t enforce the BOI reporting requirements until it releases a new reporting deadline.
The BOI report details the identities of the individuals who own or control a business. Congress passed the Corporate Transparency Act in 2021, requiring small businesses to start filing the report. The act was aimed at cracking down on illicit financial activities, such as drug trafficking, tax evasion and terrorist financing.
