Contractor reporting requirement back in effect — for now
Following a previous block, qualifying U.S. businesses are again required to file beneficial ownership reports by March 21
Image: AP Photo
Certain U.S. businesses are again required to submit ‘beneficial ownership information’ to the government, after a federal court on Tuesday lifted a previous block on a 2021 law.
Why it matters: The requirement affects over 30 million U.S. businesses, including many contractors — those with fewer than 20 employees or less than $5 million in annual revenue.
What’s happening: Dubbed the ‘Corporate Transparency Act,’ the law was introduced to crack down on money laundering, initially requiring businesses to submit beneficial ownership reports — personal information of owners with more than a 25 percent stake — by January 1, 2025.
- The measure immediately faced legal challenges, and a court in December 2024 blocked it from taking effect, saying it would burden small businesses.
- On Tuesday, that block was lifted, and qualifying businesses must now file by March 21.
- Details
What to watch: While technically back in effect, the group overseeing the law this week noted that over the next 30 days, it will “assess its options to further modify deadlines.”
- Separately, legislation introduced on February 10 to extend the deadline by a year, to January 1, 2026, is now making its way through Congress.
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