On September 28, 2023, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a proposed rule to extend the period to report beneficial ownership under the Corporate Transparency Act (the "CTA," and such proposed rule, the "Proposed Rule").[1]

Under the Proposed Rule, reporting companies created or registered on or after January 1, 2024, and before January 1, 2025, would have 90 days (vs. 30 days) to submit a report of their beneficial ownership information.

According to the Proposed Rule, the extension is intended to give reporting companies additional time to understand their reporting obligations, additional time to obtain the required information, and more time to resolve questions that may arise as reporting companies attempt to file their initial reports. Another benefit may be less initial reporting volume for the Beneficial Ownership Secure System (BOSS), the new reporting system FinCEN is creating to receive beneficial ownership information, which is set go live in early 2024.

OTHER FINCEN NEWS

In addition, FinCEN has published a small entity compliance guide,[2] FAQs,[3] and set up a small business resource page, which will hopefully become a continuously updated resource for companies endeavoring to comply with CTA.[4]

William Mullen will continue to monitor FinCEN’s implementation of the Corporate Transparency Act, and we will provide updates and alerts when warranted.

[1] Beneficial Ownership Information Reporting Requirements, 88 Fed. Reg. 66,730 (September 28, 2023). https://www.govinfo.gov/content/pkg/FR-2023-09-28/pdf/2023-21226.pdf
[2] https://www.fincen.gov/boi/small-entity-compliance-guide
[3] https://www.fincen.gov/boi-faqs
[4] https://www.fincen.gov/boi/small-business-resources