Beneficial Ownership Information Reporting Update December 30, 2024

There has been a lot of back and forth about BOI reporting under the Corporate Transparency Act (CTA). The Court entered a nationwide injunction. The Appeals Court then overturned the nationwide injunction. A different panel of the Appeals Court put the “pause” back in place.

Suffice it to say, there is currently no obligation to report BOI under the CTA.

“In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.” https://www.fincen.gov/boi

As explained by the Financial Crimes Enforcement Network website:

“On December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction entered in the case of Texas Top Cop Shop, Inc. v. Garland, pending the outcome of the Department of the Treasury’s ongoing appeal of the district court’s order. FinCEN immediately issued an alert notifying the public of this ruling, and recognizing that reporting companies may have needed additional time to comply with beneficial ownership reporting requirements, FinCEN extended reporting deadlines. On December 26, 2024, however, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s December 23, 2024 order granting a stay of the preliminary injunction. Accordingly, as of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not currently required to file beneficial ownership information with FinCEN.” https://www.fincen.gov/boi

So, the question remains: Report or Not Report? The choice is up to you. One thing is clear: this is a difficult question with nationwide implications. It appears the Courts are interested in resolving the legal questions involved in this case for the benefit of all citizens. It appears this case is headed toward the US Supreme Court.