FinCEN Not Issuing Fines or Penalties in Connection with Beneficial Ownership Information Reporting Deadlines

Immediate release: February 27, 2025

WASHINGTON––Today, FinCEN announced that it will not issue any fines or penalties or take any other enforcement actions against any companies based on any failure to file or update beneficial ownership information (BOI) reports pursuant to the Corporate Transparency Act by the current deadlines. No fines or penalties will be issued, and no enforcement actions will be taken, until a forthcoming interim final rule becomes effective and the new relevant due dates in the interim final rule have passed. This announcement continues Treasury’s commitment to reducing regulatory burden on businesses, as well as prioritizing under the Corporate Transparency Act reporting of BOI for those entities that pose the most significant law enforcement and national security risks.

No later than March 21, 2025, FinCEN intends to issue an interim final rule that extends BOI reporting deadlines, recognizing the need to provide new guidance and clarity as quickly as possible, while ensuring that BOI that is highly useful to important national security, intelligence, and law enforcement activities is reported.

FinCEN also intends to solicit public comment on potential revisions to existing BOI reporting requirements. FinCEN will consider those comments as part of a notice of proposed rulemaking anticipated to be issued later this year to minimize burden on small businesses while ensuring that BOI is highly useful to important national security, intelligence, and law enforcement activities, as well to determine what, if any, modifications to the deadlines referenced here should be considered

Corporate Transparency Act Reporting Requirements Back in Effect with Extended Reporting Deadline

FinCEN Announces Intention to Revise Reporting Rule

Following the February 18, 2025, 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., 6:24-cv-00336, the Financial Crimes Enforcement Network (FinCEN) has announced that beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act are back in effect, with a new deadline of March 21, 2025 for most companies.

FinCEN has also announced that it will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks. FinCEN intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.

Notice: https://www.fincen.gov/sites/default/files/shared/FinCEN-BOI-Notice-Deadline-Extension-508FINAL.pdf

BOI Extension information BOI FAQs 

BOI reporting deadline extension passes US House

A bill to extend the deadline for an estimated 32 million small businesses to report their beneficial ownership information (BOI) as mandated by the Corporate Transparency Act (CTA) passed the U.S. House unanimously.  The House passed H.R. 736, Protect Small Businesses From Excessive Paperwork Act of 2025, 408–0, on Monday. The bill, which goes to the Senate next, extends the deadline for filing BOI reports to Jan. 1, 2026. The deadline for most reports previously was Jan. 1, 2025, but the reporting requirements have been caught up in numerous court cases and are now on hold.  For additional information click the "Journal of Accountancy" link below.

BOI penalties increase while reporting rules remain on hold

As legal challenges to the reporting rules for beneficial ownership information (BOI) wind their way through the courts, inflation adjustments again increased the civil monetary penalties for violating those rules.  The penalties are included in the annual final rule issued by the Financial Crimes Enforcement Network (FinCEN) that provides the list of inflation adjustments of civil monetary penalties within FinCEN's jurisdiction.

BOI Extension information BOI FAQs 

IRS announces Hiring Freeze

The IRS has rescinded all job offers with a start date after Feb. 8 or with an unconfirmed start date because of a hiring freeze ordered by President Donald Trump, the agency said on its website.

Due to the Executive Order signed by the President on January 20, 2025, the Federal government has been placed on a hiring freeze. For your convenience, the link to the official White House communication related to the Federal Hiring Freeze is contained here: https://www.whitehouse.gov/presidential-actions/2025/01/hiring-freeze/.

All offers with a start date on or before Feb. 8 will continue or proceed with the hiring according to a post on the IRS jobs website. Meanwhile, the IRS said it will remove all jobs posted to external websites, including USAJOBS.gov.

Federal Civilian Hiring Freeze Guidance

IRS announces 2025 tax filing season and Direct File availability

The IRS will begin accepting business returns at 8 a.m. CST January 15 and individual returns at 8 a.m. CST starting January 27

Beneficial Ownership Information Reporting

Updates to Beneficial Ownership Information Reporting Deadlines – Beneficial Ownership Information Reporting Requirements are not currently required

Alert:  Alert [December 27, 2024]: Impact of Ongoing Litigation – Deadline Stay – Voluntary Submission Only

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. More information is available on our website.

In light of a December 23, 2024, federal Court of Appeals decision, reporting companies, except as indicated below, are once again required to file beneficial ownership information with FinCEN. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, we have extended the reporting deadline.

BOI Extension information

At approximately 5:30 pm CST Tuesday, 03 December 2024, Judge Amos L. Mazzant III of the US District Court for the Eastern District of Texas issued an injunction preliminary blocking the regulations nationwide.  The AICPA on Thursday, December 5, 2024, sent their CPA Letter with the Top Story headlines of this news.

Federal ruling halts BOI reporting for now

Finding the Corporate Transparency Act “likely unconstitutional,” a federal district court prohibited its enforcement and the enforcement of its accompanying regulations. Journal of Accountancy (12/5)

Other reports regarding the ruling are available in the links below.

Bloomberg Law  The Woodard Report

IRS to Use IP PINs to Stop Refund Delays Due to Duplicate Dependent Returns

The IRS will begin accepting certain e-filed tax returns claiming dependents who have already been claimed on another taxpayer's return to prevent refund delays for tax credits, including the earned income tax credit (EIC) and the child tax credit (CTC). Beginning with the 2025 filing season, the IRS will accept Forms 1040, 1040-NR and 1040-SS, even if a dependent listed on the return has been claimed on someone else's previously filed return, so long as the primary taxpayer on the second return includes a valid identity protection personal identification number (IP PIN).

FinCEN Publishes Beneficial Ownership Reporting Outreach and Education Toolkit

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued another resource to familiarize small business owners with beneficial ownership reporting requirements. These reporting requirements are mandated by the Corporate Transparency Act, a bipartisan law enacted to curb illicit finance by supporting law enforcement efforts. This law requires many small businesses to report basic information to the Federal government about the real people who ultimately own or control them.

The toolkit contains templates and sample content that has been structured to allow private, public, and non-profit organizations to share and amplify this important information. The toolkit includes general background on the reporting requirements, as well as templates for newsletters, websites, and emails; sample social media posts and images; and information on how to contact FinCEN.

News Release: https://www.fincen.gov/news/news-releases/fincen-publishes-beneficial-ownership-reporting-outreach-and-education-toolkit

Toolkit: https://www.fincen.gov/boi/toolkit

Chevron doctrine overturned: Implications for tax professionals

In this joint episode, Neil Amato, host of the Journal of Accountancy podcast and Melanie Lauridsen, VP of AICPA Tax Policy and Advocacy discuss two recent Supreme Court decisions.

The Supreme Court ruling in Loper Bright Enterprises v. Raimondo overturned a 40-year-old precedent of deference referred to as the Chevron doctrine, affecting future rulemaking by eliminating the need for judges to defer to agency interpretations of ambiguous statutes. In Corner Post, Inc. v. Board of Governors of the Federal Reserve System, the Supreme Court ruled to alter the statute of limitations for challenging regulations, starting the clock when a plaintiff is injured rather than when the regulation is enforced.

These decisions introduce significant uncertainty for the accounting profession, particularly regarding IRS regulations and long-standing rules and emphasize the need for CPAs to stay informed and adaptable as the implications of these rulings unfold.
Tax Section 

Final and proposed regulations issued on retirement plan RMDs

IRS Statement on balance due notices (CP14)

June 12, 2024

The IRS is aware that some taxpayers are receiving CP14 (Balance Due, No Math Error) notices indicating a balance due even though payments were made with their 2023 tax return.

Who is affected: Taxpayers who paid electronically or by check with their 2023 tax return, may show their accounts as pending, although the IRS has received and processed payment through their banking institution. The notice may have been initiated before the payment was processed on the account, or the payment may have been processed but contained errors and requires additional handling to address the error before updating the tax account.

No immediate action or phone call needed: Taxpayers who receive a notice but paid the tax they owed in full and on time, electronically or by check, should not respond to the notice at this time. The IRS is researching the matter and will provide an update as soon as possible.

Note that any assessed penalties and interest will be automatically adjusted when the payment(s) are applied correctly by the IRS.

Taxpayers who paid only part of the tax reported due on their 2023 return should pay the remaining balance or follow instructions on the notice to enter into an installment agreement or request additional collection alternatives.

For affected taxpayers, the IRS apologizes for the inconvenience this delay in processing your payment has caused.