When is a deadline not a deadline?

FinCEN announces non-enforcement policy for late-filed BOI reports until after new final rule adopted.

On February 27, FinCEN announced that it would not impose fines or take other enforcement action (a fairly important point since the statute can carry criminal penalties) for failure to file BOI reports or update already-filed reports by the recently announced March 21 deadline.  The enforcement moratorium will continue until the Treasury Department issues a new “interim” final rule on reporting with a new due date for reports under the new interim rule.

The stated goal of the new regime will be to ease regulatory burdens on small businesses and prioritize reporting by “those entities that pose the most significant law enforcement and national security risks.”  FinCEN plans to issue the new rule by March 21, which will include a revised reporting deadline.

With this most recent change of position by FinCEN, companies may want to weigh the risks of deferring reports until after the March 21 guidance is issued against the burden of meeting a new deadline for filing.  Clients with specific questions about the announcement’s effect on their operations should contact one of PRK Livengood’s CTA compliance team.

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