From CNBC: 2025-02-20 11:10:23

Former U.S. Treasury Secretary Janet Yellen addresses Financial Crimes Enforcement Network staff. The Treasury Department sets a new March 21 deadline for small businesses to report beneficial ownership information. Failure to comply could result in civil penalties and criminal fines up to $10,000 and two years in prison.

The Corporate Transparency Act requires businesses to disclose ownership information to prevent illicit activity. A court order allowed the Treasury to enforce the measure after delays. Businesses face penalties for non-compliance, but FinCEN may consider further deadline extensions for reporting.

About 32.6 million businesses must adhere to the BOI reporting requirement. Non-compliance may lead to daily civil penalties, criminal fines up to $10,000, and two years in prison. FinCEN may offer additional deadline extensions for businesses needing more time to meet reporting obligations, prioritizing enforcement on national security risks.

Read more: Treasury sets new deadline for businesses to report ownership information