The Corporate Transparency Act Is Back in Effect With a New Deadline of March 21, 2025

Posted on February 27, 2025, by Starlett Massey

The federal government enacted the Corporate Transparency Act (“CTA”) in 2021. It enhances transparency in corporate entity structures by requiring disclosure of the identities of individuals who own and control U.S. companies. The CTA aims to assist the federal government in combating money laundering, tax fraud, terrorism funding, and other illicit activities.  

After being temporarily blocked in December 2024, the CTA was reinstated on February 18, 2025. This came after a decision by the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.). The new general reporting deadline for most reporting companies is March 21. With the CTA back in effect, it is important that every business owner know how to comply with the CTA and keep up to date with the deadlines put in place by the Financial Crimes Enforcement Network of the U.S. Department of the Treasury (“FinCEN”). 

What does this mean for you?

Companies are required to report their beneficial ownership information (“BOI”) to FinCEN. Because complying with the reporting obligations takes time, the Department of the Treasury has extended the deadline to March 21 for most businesses, with some exceptions. For example, extensions into April have been provided for victims of recent natural disasters, such as Hurricanes Debby, Helene, and Milton. 

Further, businesses that have been members of the National Small Business Association since March 1, 2024, are not currently required to report their beneficial ownership information to FinCEN.

To reduce the regulatory burden on businesses, FinCEN will also further review options and deadlines, prioritizing reporting for entities posing the most significant national security risks. FinCEN will provide an update before March 21 if the deadline is modified further. 

Visit the FinCEN website and review its updated reporting guidelines for an in-depth explanation of the CTA and to monitor the deadlines going forward. 

What next steps should you take? 

Due to the deadline changes and special cases, MLG recommends that businesses consult with an attorney to ensure they provide timely and accurate BOI reports. Contact us today to review your company’s structure and prepare for successful, timely, and accurate CTA reporting.