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FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons, Sets New Deadlines for Foreign Companies
Per an announcement from Friday, March 21st, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act
Within the interm rule, FinCEN has revised the defininition of "reporting company" to mean only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office (formerly known as “foreign reporting companies”).
Furthermore, FinCEN exempted entities previously known as “domestic reporting companies” from BOI reporting requirements.
The details of this rule, which FinCEN intends to finalize this year, state that:
U.S. Entities:
- All entities created in the United States and their Beneficial Owners will be exempt from the FinCEN BOI Report requirement.
- All entities created in the United States, which includes those previously known as "domestic deporting companies" and their Beneficial owners, will be exempt from the requirement to report BOI to FinCEN.
Foreign Entities:
- Foreign Entities (that do not qualify for an exemption) must report-
- within 30 days of this rule (4/30/2025).
-
or within 30 days from their formation date if formed after 3/22/2025.
- However, Foreign Entities will not be required to report any U.S. persons as Beneficial Owners, and U.S. Persons will not be required to report BOI regarding any entity they own.
Here is Johnny
John Sheeley, EA is a seasoned tax professional based in Chester, New York with over 30 years of experience in the industry. He began his career in 1987 and passed the IRS Special Enrollment Exam in 1995. His diverse background includes owning multi-unit franchises of a national tax firm for 13 years and working as a tax manager at a regional CPA firm for 5 years.
In 2013, John co-founded Tax Practice Pro, Inc., a leading provider of IRS and NASBA approved continuing education for tax professionals through an innovative subscription-based model. Tax Practice Pro also offers tax practitioner programs including Enrolled Agent test preparation, practitioner mentoring and practitioner coaching programs.
John’s current speaking interests include leveraging artificial intelligence for tax preparation, tax practice management, unraveling complexities of S corps, and taxation for non-resident aliens and expatriates.
John is a National Tax Practice Institute fellow and earned his undergraduate degree from the State University of New York at Oswego. He can be reached at [email protected].
