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CORPORATE TRANSPARENCY
UPDATE
Good news! After I published yesterday's newsletter, the Treasury Department announced it will not issue fines or penalties or take any enforcement actions against companies that fail to file beneficial ownership information. The following was posted on their website:
 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.
Thank you for your extremely important work in authoring the Davis-Stirling Act. -Frank D.
RESPONSE: Yes, many thanks to the Hon. Larry Stirling for authoring the Act and to those who drafted the language--Katharine Rosenberry, Curt Sproul, Michael Packard, and others.
Thank you for your newsletters. We all appreciate them. Your website is my “go-to” for information. -Lorna L.
I am a big fan of your newsletters. -Karen F.
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DISCLAIMER. Our newsletter provides commentary, not legal advice. Boards needing legal advice should have an attorney review the facts and law for their particular situation. We serve as corporate counsel to California associations.
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