BOI REPORTING MANDATE MAY NO LONGER BE ENFORCED
A preliminary injunction has been filed on December 3 in a Texas federal district court against the enforcement of the Corporate Transparency Act (CTA) - the Act which mandated most business owners to file the Beneficial Ownership Information (BOI) report for which we’ve previously written about. The original reporting was due 1/1/2025, but the injunction has currently nullified this deadline for the time being.
At this time FinCEN is unable to enforce compliance with the CTA and the BOI reporting. However, this is a fluid situation, and the injunction COULD be overturned - upholding the ruling that the reporting WOULD BE enforced.
How should business owners progress from here:
• If you have already filed, no further action is required at this time. Additionally, if there has been a subsequent beneficial ownership change since the initial filing you currently do not have to comply with an updated filing.
• For clients who have engaged us to file on their behalf, we have paused that process until further clarification is received.
• We would encourage business owners who will be filing on their own, to consult legal counsel and act accordingly based on their level of comfort with this matter.
We will work diligently to keep our clients abreast of any updates as they become available to us. As always, please contact us if you have any questions or concerns.