BOI reporting off, back on, now off again

The ongoing legal battle surrounding Beneficial Ownership Information (BOI) reporting has created uncertainty for business owners. Here’s the latest:

  • Dec. 3, 2024: The Eastern Texas District Court placed an injunction on the Corporate Transparency Act (CTA), preventing FinCEN from enforcing BOI filing requirements.
  • Dec. 23, 2024: The fifth Circuit Court of Appeals stayed the Texas court’s injunction, briefly reinstating the BOI reporting requirement. FinCEN responded by extending the filing deadline for businesses formed before 2024 from Jan. 1, 2025, to Jan. 13, 2025.
  • Dec. 26, 2024: The court reversed course again, lifting its stay and blocking enforcement of the filing requirement until further notice.

What this Means for Business Owners

As of now, there is no enforceable requirement to file BOI reports. However, given the unpredictable legal environment, businesses should:

  • Stay Prepared: If you have not yet filed your report, continue gathering the necessary information to file your BOI report. Deadlines could be reinstated with little notice.
  • Consider Voluntary Filing: While not required, voluntary filing ensures compliance if the requirements are suddenly enforced.
  • Monitor Updates: This legal back-and-forth could continue. Stay informed about potential changes.

For the latest official updates, visit FinCEN’s BOI page: https://www.fincen.gov/boi.

Contact an Adams Brown advisor if you have questions.