Several new financial regulations and compliance deadlines take effect in March 2025, with a major focus on consumer protection against predatory lending and updated reporting requirements for businesses.
The Abstract, Fall 2025
FinCEN's Residential Real Estate Rule (RRE Rule) requires certain industry professionals to report information to FinCEN about non-financed transfers of residential real estate to a legal entity or trust. The RRE Rule is scheduled to take effect on December 1, 2025.
Starting March 1, 2026, the Residential Real Estate Rule requires certain professionals involved in real estate closings and settlements to submit reports to FinCEN regarding certain non-financed transfers of residential real estate to legal entities or trusts.
Reporting companies registered to do business in the United States before March 26, 2025, must file BOI reports by April 25, 2025.
The federal Beneficial Ownership Rule requires financial institutions to collect and verify BOI identification from a legal entity—called a “reporting company”—when that entity seeks to set up a new account or other business relationship with the company.
It's generally not fully safe to keep $500,000 in one bank account because the standard FDIC insurance limit is $250,000 per depositor, per bank, per ownership category, meaning $250,000 is at risk if the bank fails. To fully protect the entire $500,000, you need to structure it across different ownership categories (like single, joint, trust accounts) or use multiple banks to spread the funds, leveraging separate $250,000 coverage for each.
Yes, 23 types of entities are exempt from the beneficial ownership information reporting requirements. These entities include publicly traded companies meeting specified requirements, many nonprofits, certain regulated companies, and certain large operating companies.
Tax-Exempt Organizations
Non-profit organizations, including charitable foundations, religious institutions, political organizations, and trusts that are tax-exempt under federal law, do not have to file BOIRs. Their non-profit status already requires them to disclose significant information to the IRS and the public.
Yes, CPAs can assist with BOI reports by providing general information, helping determine reporting requirements, and completing forms based on client data.
The BOI filing is now only required if you are a company formed under the laws of a foreign country that has then registered to do business in the US.
❗On Dec. 3, 2024, a federal court in Texas ordered a stay in beneficial ownership information reporting deadlines. As of this writing, businesses are no longer required to file BOI reports with FinCEN. Businesses can, however, still voluntarily submit BOI reports through the FinCEN website.
Beneficial ownership means someone has at least 25% ownership interest (through equity, stock, voting rights, etc.) or exercises substantial control.
More In File
Certain types of corporations, limited liability companies, and other similar entities created in or registered to do business in the United States must report information about their beneficial owners—the persons who ultimately own or control the company—to FinCEN as of Jan. 1, 2024.
What has changed about which companies are required to report beneficial ownership information (BOI) to FinCEN? Companies created in the United States are no longer considered reporting companies and therefore do not need to report BOI to FinCEN under the Corporate Transparency Act.
A wide range of activities may trigger FinCEN's radar, including simple cash smuggling operations to large-scale, complex digital transactions. The power of FinCEN lies in the network of regulators, companies, and law enforcement it maintains, which allows it to monitor across a broader scope.
Failure to file may become extremely costly, with civil penalties starting at $500 per day and criminal penalties of up to $10,000 and/or two years in prison.
While all CPAs are accountants, not all accountants are CPAs. In fact, according to data from the Bureau of Labor Statistics (BLS), and CPA licensure data, only about 50% of accountants in the United States are actively licensed CPAs.
Summary. Under the CTA, an LLC (unless an exemption applies) is a “reporting company” that must file a beneficial ownership information report via the Beneficial Ownership Secure System (“BOSS”) interface and database.
All entities created in the United States — including those previously known as “domestic reporting companies” — and their beneficial owners are now exempt from the requirement to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) under the Corporate Transparency Act (CTA ...
Certain NRIs: If the NRIs are only generating income from dividends or interest, or if their income is subject to TDS, then they might be exempted from filing tax returns. Senior Citizens (above 75 years): Senior citizens above the age of 75 whose income consists of pension and interest can be exempt from filing ITR.
Note that under a separate reporting requirement, banks and other financial institutions report cash purchases of cashier's checks, treasurer's checks and/or bank checks, bank drafts, traveler's checks and money orders with a face value of more than $10,000 by filing currency transaction reports.
A non-beneficial owner often holds a share for someone else. Some common examples of non-beneficial owners include parents who hold shares for their children, the executor of a will who owns shares on behalf of an estate, or a trustee who holds shares for the beneficiaries of a trust.
In a nutshell, sole proprietorships do not have to file a BOI report to FinCEN. However, if your business takes off and you decide to form an LLC or a corporation, you'll be required to report your BOI.