FBAR Filing Relief and Corporate Transparency Act Update
The Financial Crimes Enforcement Network (FinCEN) recently announced extended deadlines for the filing of Foreign Bank and Financial Accounts Reports (FBAR) for individuals and businesses affected by federally declared disaster areas and terrorist attacks. Additionally, a recent court ruling has temporarily stayed Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act. Here’s a breakdown of the latest developments:
Extended Deadlines for FBAR Filing Relief
Relief for Storm Victims
Victims of Hurricanes Milton and Helene now have until May 1, 2025, to file FBARs for the 2023 calendar year, as outlined in notices FIN-2024-NTC6 and FIN-2024-NTC4. Victims of Hurricanes Debby and Beryl, along with Tropical Storm Francine, have until February 3, 2025, to file their reports, according to notices FIN-2024-NTC2, FIN-2024-NTC1, and FIN-2024-NTC3.
The filing relief applies to areas designated for individual or public assistance by both the Federal Emergency Management Agency (FEMA) and the IRS as eligible for tax filing relief. If additional areas are later designated by the IRS, FinCEN relief will automatically apply to those regions as well.
Previously, the deadline for FBAR filings for the 2023 calendar year was October 15, 2024.
Relief for Those Affected by Terrorist Attacks
Individuals and businesses impacted by terrorist attacks in Israel during 2023 and 2024 now have until September 30, 2025, to file FBARs for the 2023 calendar year, as announced in notice FIN-2024-NTC5. This relief aligns with IRS-provided tax relief under Notice 2024-72 and is aimed at taxpayers who may face challenges in meeting tax-related obligations due to the attacks.
This relief is separate from the assistance FinCEN announced in October 2023 for those affected by the October 7, 2023, attacks in Israel.
Temporary Stay on BOI Reporting Requirements
A federal district court in Texas issued an injunction on December 3, 2024, temporarily halting enforcement of the Corporate Transparency Act’s reporting rule. This ruling suspends BOI reporting requirements, including the January 1, 2025, deadline for businesses formed or registered before January 1, 2024, while the injunction remains in place. The Department of Justice has appealed the decision.
The injunction means that reporting companies defined by the law are not currently required to file BOI reports. However, the situation remains fluid. Individuals and entities subject to BOI reporting requirements should monitor developments closely, as legal proceedings may reverse the decision and reinstate compliance obligations.
If you have questions about these updates or need assistance navigating your compliance obligations, please contact our office at (202) 455-6010 or schedule a confidential consultation.
