Summary of FinCEN Benneficial Ownership Interest Reporting (BOI) Update 27-Dec-2024
Key BOI Filing Update: Filing Requirement Temporarily Stayed
Due to a federal court order, reporting companies are not currently required to file Beneficial Ownership Information (BOI) reports with FinCEN and will not face penalties for non-compliance while the order remains in effect. Filing BOI reports is voluntary during this period.
Background
The Corporate Transparency Act (CTA) aims to prevent illicit activities like money laundering, terrorist financing, and drug trafficking while promoting fairness for small businesses.
On December 3, 2024, a federal court issued a nationwide preliminary injunction in Texas Top Cop Shop, Inc. v. Garland, halting BOI reporting requirements.
The Department of Justice (DOJ) appealed the injunction and obtained a temporary stay on December 23, 2024, which allowed the reporting deadline to be extended.
However, on December 26, 2024, a new court panel vacated the stay, reinstating the injunction and suspending BOI filing obligations.
Current Status
While the legal dispute continues, reporting companies are not required to submit BOI reports, but voluntary filings are still accepted by FinCEN. The DOJ and the Department of Treasury maintain their stance that the CTA is constitutional and are pursuing further appeals.
Source: https://www.fincen.gov/boi
For full information see…
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