Important BOI Reporting Updates for Small Business Owners – February 20, 2025

Attention small business owners and entrepreneurs:

Recent developments surrounding Beneficial Ownership Information (BOI) reporting may impact your filing requirements and deadlines.

Here’s everything you need to know to stay compliant:

Key Update #1: New Deadline of March 21 for Most BOI Filings

The Financial Crimes Enforcement Network (FinCEN) announced that most small businesses required to file BOI reports will have until March 21, 2025, to complete their filings. This extension follows a recent court decision lifting a nationwide injunction that had delayed the filing process.

However, if your company was previously given a deadline beyond March 21 (e.g., an April 2025 deadline due to disaster relief extensions), you should adhere to that specific later date.

Key Update #2: Potential for Further Deadline Modifications

FinCEN has also indicated it will assess its options to further modify deadlines during the 30-day extension period. The agency is exploring ways to reduce the burden on lower-risk entities, including many U.S. small businesses, and will provide updates regarding any additional changes to BOI obligations.

Key Update #3: Legislative Efforts to Extend Filing Deadlines

The U.S. House of Representatives has unanimously passed H.R. 736, Protect Small Businesses From Excessive Paperwork Act of 2025, which proposes extending the BOI reporting deadline to January 1, 2026.

• The bill now moves to the Senate for consideration, with companion legislation introduced by Senator Tim Scott.
• If passed, this extension would apply to reporting companies existing prior to January 1, 2024.

Advocates like Melanie Lauridsen, Vice President–Tax Policy & Advocacy at AICPA, have called this proposed extension “hopeful information” for small businesses, granting them much-needed time to prepare for compliance.

What Should Small Business Owners Do Now?

If your business is required to file a BOI report, here’s what we recommend as next steps:

1. Confirm Your Filing Deadline – If unsure, check whether your specific business falls under the March 21 deadline or qualifies for a later extension.
2. Monitor Updates – Be aware that proposed legislation or court rulings may further extend deadlines. Stay informed by keeping an eye on FinCEN announcements.
3. Prepare for Compliance – Begin gathering details about your business ownership structure to simplify the reporting process.

Why Does This Matter?

The BOI reporting requirements are part of the Corporate Transparency Act (CTA), designed to enhance transparency and combat financial crimes. However, the compliance process has posed challenges for millions of small businesses.

At Cobb CPA, we’re committed to keeping you informed and supported as you navigate these requirements. Schedule a call with us below to hear from our experts about the BOI mandate.

Stay proactive and set yourself up for success!