On February 17^th, the United States District Court for the Eastern District of Texas overruled  the preliminary reporting injunction on the Smith vs U.S. Department of Treasury case; that means the beneficial owner information reporting requirement is back in effect.  As mentioned in our previous BLOG, FINCEN has agreed to a 30 day extension for the reporting requirement starting February 19, 2025.

FINCEN posted an alert on its website that during the 30 day period, they will be assessing its options to modify deadlines and revise the BOI reporting rule to reduce the burden for low risk entities , which includes many U.S. small businesses.  The new deadline for filing initial, updated or corrected BOI reports in March 21, 2025.  FINCEN will provide an update before that date with any further modifications to the reporting rules.

We are also monitoring legislation moving through Congress which will delay the beneficial owner information reporting, for entity’s created prior to January 1, 2024, until January 1, 2026.  The proposed legislation, H.R 736 Protect Small Businesses from Excessive Paperwork Act of 2025, was overwhelming passed by the House and pending in the Senate.  There are also numerous pending appeals that will be heard in the coming months regarding the constitutionality of the law.

We are monitoring the issues closely and any updated will be posted to our website.

Polk & Associates

Large enough to serve a diverse clientele, yet small enough to maintain a hands-on approach, we are committed to maintaining the highest accounting and ethical standards with continuous education, extensive research resources, and excellent quality control.

Polk and Associates is a member of the Michigan Association of Certified Public Accountants, and the American Institute of Certified Public Accountants. The firm participates in the AICPA Peer Review Program, and has always received the highest level of award for its audit practice and quality control.