FinCEN Beneficial Ownership Information Report Filing Update
In October 2023, we issued a blog on the new Financial Crimes Enforcement Network (FinCEN) Beneficial Ownership Information (BOI) Reporting requirements. Within the last month, there have been various court proceedings relative to the constitutionality of the Corporate Transparency Act (CTA) and the BOI reporting.
First, on December 3, 2024, the district court entered an order enjoining enforcement of the Corporate Transparency Act and its corresponding Reporting Rule. Then, Fifth Circuit Court of Appeals granted the government’s emergency motion for a stay pending appeal.
In the most recent decision on December 26th, the Fifth Circuit Court reinstated the district court’s preliminary injunction on the enforcement of BOI filing, therefore placing a temporary hold on the filing. An appeal has been filed and BOI reporting is not required until a final decision is reached.
Given the original deadline for most businesses was January 1, 2025, we recommend that, if you have not already filed, you be prepared to do so if BOI filing becomes active. As a reminder, we as a firm do not prepare these reports, but we recommend that you research the filing requirements and/or reach out to your legal counsel if you are hesitant to file yourself.
For more information, you can visit the following links:
Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-000478 (E.D. Tex.)
As always, please contact our office with any questions.