January 2025 Update: BOI Reporting On Hold
As you may have heard, the U.S. Fifth Circuit Court of Appeals is reviewing a Texas court’s decision to enjoin the enforcement of the beneficial ownership information reporting requirement. (Texas Top Cop Shop, Inc. et al. v. Garland (December 26, 2024) U.S. Ct. of Appeals, Fifth Circuit, Case No. 24-40792) The review will be expedited but in the interim, the requirement to file a BOI report with FinCEN is on hold.
As the law now stands today, penalties cannot be imposed against businesses who fail to file BOI reports with FinCEN. However, as we have seen recently, this can change at any point.
Over the last year, we’ve been telling you that all new businesses must file these reports no later than January 1, 2025 (the original deadline), or face penalties of up to $591 per day. As a result of the Texas district court’s ruling, this is no longer the case … at least for now.
Although businesses do not have to file BOI reports while the court’s order is still in effect, businesses do have the option to continue to file their reports while this issue works its way through the courts. And it is possible that this requirement could be reinstated with very little time to file. As a result, we recommend that you continue to gather all necessary information to be ready to file should the reporting requirement be reinstated.
The choice is yours:
As the law now stands today, penalties cannot be imposed against businesses who fail to file BOI reports with FinCEN. However, as we have seen recently, this can change at any point.
Over the last year, we’ve been telling you that all new businesses must file these reports no later than January 1, 2025 (the original deadline), or face penalties of up to $591 per day. As a result of the Texas district court’s ruling, this is no longer the case … at least for now.
Although businesses do not have to file BOI reports while the court’s order is still in effect, businesses do have the option to continue to file their reports while this issue works its way through the courts. And it is possible that this requirement could be reinstated with very little time to file. As a result, we recommend that you continue to gather all necessary information to be ready to file should the reporting requirement be reinstated.
The choice is yours:
- If you would rather not file the report, no penalties can be imposed against you at this point;
- If you have already filed, there is nothing more you need to do. At this stage we do not have any information as to whether FinCEN will destroy all the previously provided information; or
- If you haven’t filed but have all the information ready and would like to file, you are free to do so.