Feb. 28, 2025
The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) recently announced that entities subject to the Corporate Transparency Act (CTA) must comply with filing requirements by March 21.
The CTA requires certain limited liability companies (LLCs) and other entities to report “ultimate beneficial-owner information,” including name, date of birth, current address and more, to FinCEN through a Beneficial Ownership Information (BOI) report. This would apply to many entities that own business aircraft in an LLC, a common structure to establish leases under which companies may share aircraft and for a host of other business and tax reasons.
NBAA member companies subject to the CTA requirements should review their entity structures with competent counsel and file the BOI report prior to the deadline.
The updated compliance date follows several legal battles, with the Supreme Court of the United States (SCOTUS) overturning a federal court’s decision that reporting requirements in the CTA may be unconstitutional. The SCOTUS decision paved the way for FinCEN to issue a new compliance deadline.
However, legislation to delay or repeal the CTA has been introduced in Congress. The prospects for this legislation are unclear, given the number of issues currently facing Congress, as well as tight majorities in both houses.
FinCEN has also indicated revisions to the BOI reporting requirements may change in the future to reduce the burden for lower-risk entities, including many U.S. small businesses, while prioritizing reporting for those entities that pose the most significant national security risks.
NBAA will monitor the situation and provide updates as available.
International Business Aviation Council Ltd.