In a win for AGC and construction companies, the Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule (IFR) on March 21st that removes the requirement for U.S. companies to report their beneficial ownership information (BOI) under the Corporate Transparency Act (CTA). In the IFR the Trump administration revised the definition of “reporting company” to mean only entities formed under the law of a foreign country and operating in the U.S., essentially exempting all businesses created in the U.S. from these reporting requirements.
The BOI rule, originally was set to require companies to report detailed ownership information to FinCEN, created an undue burden on small contractors. AGC has been actively engaged in pushing back against these requirements, raising concerns with Congress and in legal challenges about the unnecessary costs and administrative headaches the CTA created for contractors.
With this new revision, contractors will no longer have to worry about meeting BOI reporting obligations, saving time and resources that are better spent on running their businesses. As always, AGC will keep you updated on any further developments.
For additional information, please contact Deniz Mustafa.