This affects ALL clients who own a corporation, partnership, or LLC who have not yet filed their Business Ownership Information Report, which had an original deadline of December 31, 2024. As a reminder, here is a link to our original article on filing requirements: flatironadvisors.com/new-beneficial-ownership-information-reporting-requirements.
As of December 3, 2024, this filing requirement has been at least temporarily suspended.
On Tuesday, December 3, 2024, a federal district court in Texas issued an order granting a nationwide, preliminary injunction that: (1) enjoins enforcement of the Corporate Transparency Act (CTA) and regulations implementing its beneficial ownership information (BOI) reporting requirements, and (2) stays all deadlines to comply with the CTA’s reporting requirements, including the January 1, 2025 deadline for reporting companies to submit their initial BOI report. The Department of Justice, on behalf of the Department of the Treasury, filed an appeal of the district court’s decision on December 5, 2024.
The Financial Crimes Enforcement Network (FinCEN) has responded that as long as the preliminary injunction remains in effect:
- reporting companies are not required to report BOI to FinCEN; and
- reporting companies will not be subject to liability for failing to report their BOI.
FinCEN also indicated that reporting companies may continue to voluntarily submit BOI reports.
What you need to do:
If you have already filed your BOI report for 2024, you do not have to do anything at this time.
If you have NOT filed your BOI report for 2024, you should know that the requirements are currently on hold. You may need to comply if the rules are ultimately upheld.
The future of the CTA and BOI reporting, including when reports need to be submitted, remains fluid and unpredictable. While the Texas district court’s ruling may be the most recent decision issued, it is not the only case in which the CTA has been challenged. Federal district court decisions on the validity of the CTA have conflicted, and three district court cases are currently being appealed to their respective Courts of Appeals.
Resources for More Information
For further details and updates on the Beneficial Owners Information Reporting Requirements, consider visiting the following reliable sources:
Financial Crimes Enforcement Network – FinCEN (https://boiefiling.fincen.gov)
FAQs published by FINCEN: https://www.fincen.gov/boi-faqs
BOI Filings Services Through CorpNet: https://www.corpnet.com/start-business/boi-reporting/
The information provided in this blog post is intended for general guidance and is not a substitute for professional legal or financial advice. Always consult with a professional advisor for specific advice related to your situation.
