House Passes Beneficial Ownership Reporting Extension

This post has been updated.

The House has approved legislation by a unanimous 408-0 vote that would grant small businesses, formed before Jan. 1, 2024, a one-year extension to comply with the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting.

Prior to the House vote on the Protect Small Businesses from Excessive Paperwork Act, NAHB sent a letter of support for the bill because the extension would give our members more time to understand and comply with BOI reporting rules.

The Financial Crimes Enforcement Network (FinCEN), which oversees the implementation of the CTA, issued a statement on Jan. 24 putting a halt to small business reporting requirements — regardless of when they were formed. While FinCEN’s administrative action is helpful, having Congress step in to pass legislation will codify the one-year extension and provide a durable grace period.

As this legislation moves through the process, companies must be aware that the situation surrounding FinCEN’s pause and the courts’ action is fluid and could still change. That’s because several court cases are ongoing regarding the rule.

NAHB has been working on the legislative and legal fronts to ensure small businesses have ample time to file BOI with FinCEN.

The House bill was an important step forward in the legislative arena and we will be urging the Senate to introduce and pass companion legislation.