Corporate Transparency Deadline Set, but Uncertainty Still Looms
US businesses preparing to disclose their beneficial ownership information to the government under its new March 21 deadline to enforce the Corporate Transparency Act could see the compliance date pushed back again.
That deadline is when most businesses must file reports identifying who owns or controls their company, directly or indirectly, to the Financial Crimes Enforcement Network. The bureau set the deadline late on Feb. 18 after a court lifted the last remaining nationwide block against the Corporate Transparency Act. Legal challenges repeatedly thwarted the law’s implementation, which had been scheduled to take effect on Jan. 1, 2025.
FinCEN, which sits within the Treasury Department, said in its announcement that it would consider further modifications to the deadline and possibly shrink the pool of companies required to file reports. Finer details about those changes will determine the path forward for a swath of small businesses that haven’t yet made their disclosures, said Jennifer L. Horowitz, chair of Cole Schotz PC’s corporate transactions department.
Future delays and exceptions for low-priority businesses “would be beneficial for everyone involved, including FinCEN, which seems to want more time even within its own self-made deadline,” Horowitz said. “I do think it would behoove everyone to analyze which entities are, in fact, appropriate filing entities, and in which time frame,” Horowitz said.
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As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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