On February 27^th, the Financial Crimes Enforcement Network (FINCEN), a division of the United States Department of Treasury, announced that it will not issue any fines or penalties or take any enforcement action against companies that do not file their Beneficial Owner Information “BOI” report by the March 21^st deadline.   They are expecting to announce interim final rules and new relevant due dates.

In a surprise move by the United States Department of Treasury on March 2^nd , they will not enforce fines or penalties on the current BOI reporting requirements and due dates AND against any United States citizen or domestic reporting companies or their beneficial owners after FINCEN announces new reporting requirements and due dates. The Treasury Department is proposing new rules to limited the reporting requirements to foreign reporting companies only.

What this means is that domestic companies that have not filed their BOI reports, will not face fines or penalties for failure to file. Foreign reporting companies will still face fines or penalties if they do not file their BOI reports by the deadline.  Companies that have already filed their BOI report will not need to do anything.

Companies can choose to voluntarily file their BOI report.

The Corporate Transparency Act is still a law, so either Congress or the judicial branch will need to amend or overturn the law.

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

Please contact you Polk and Associates relationship manager if you have any additional questions.

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.