Note: This article is the third of a series regarding BOI reporting updates as we’ve followed changes. See also our introductory blog to the reporting requirement and our previous coverage of the legislative changes.

4/1/2025 Update:

As of March 21, U.S. companies are no longer required to file their Beneficial Ownership Information (BOI) Report, as the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule lifting the requirement from business owners.

The ruling follows a news release from FinCEN on Feb. 28 stating its intent to issue an interim final rule lifting the requirement.

In the final rule, U.S.-based companies – previously known as “domestic reporting companies” – and their beneficial owners became exempt from reporting. Foreign companies – known as “foreign reporting companies” in the former BOI rule – must still report their BOI to FinCEN. These include any businesses created under the law of a foreign country or those that have registered to do business outside of the U.S. Additionally, U.S. citizens, even if they are a beneficial owner of a foreign company, are not required to file.

History of the BOI Requirement

The BOI reporting requirement is the product of the Anti-Money Laundering Act of 2020. The Corporate Transparency Act (CTA) was created January 1, 2021, in an effort to increase protection against fraud by mandating corporations, LLCs, and other entities to report their beneficial owners to FinCEN. Beneficial owners were defined as individuals who owned or controlled a company.

In January 2024, the reporting requirement went into effect for domestic and foreign companies. The initial requirement gave companies formed before January 1, 2024, until January 1, 2025 to file their report. For any company formed after January 1, 2024, the company had 90 days to file its beneficial owners and company applicants.

However, a preliminary injunction against BOI reporting filed by a Texas court in early December 2024 was the first of several legal steps to remove the reporting requirement. Over the following months, ongoing legal proceedings evolved, culminating in the March 21 decision.

How does this impact you?

Tax laws are constantly evolving, and we are committed to keeping you informed about any new regulations. Regarding BOI, there are no fines or penalties for any filings you may have previously completed. We will continue to monitor developments and provide you with the best possible guidance.

If you have any questions, call our office at (417) 823-7171 or email us at info@abacuspro.com.