BOI (Beneficial Ownership Information) Reporting Suspended by U.S. District Court - UPDATED 12/30/2024
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On December 26, 2024 the BOI filing requirements were placed on hold. You do not have to file the BOI report as of the above date. Confused? Read on!
The U.S. Court of Appeals of the Fifth Circuit initially lifted the injunction on December 23rd but then reversed that decision on December 26th. In plain English, you do not have to file. We now have till March 25, 2025 which is when the Appeals Court will hear the arguments regarding the validity of this requirement. This matter is considered government overreach and not a simple legal decision. While anyone can say that the injunction should have stayed in the first place, we do not know what the decision makers had in their mind. What we do know is, they are taking an affirmative action to settle this view in court. That decision requires facts to be presented by both sides, those that oppose and those that agree. Once the arguments are on the table, the court will make an informed decision on the matter. Don't hold your breath. Go ahead and gather your information and have it ready pending the decision. Better to be prepared than to scramble at the last minute.
What is BOI?
The BOI (Beneficial Ownership Information) reporting requirements have been postponed thanks to a ruling by a federal judge in Texas. Small business were required to file a BOI report by Jan 1, 2025 if they were established prior to Jan 1, 2024. The small businesses that were established in 2024 had 90 days to comply with the filing requirements or face a hefty penalty ($591 per day up to $10K).
On Dec. 3, 2024, a federal district court in Texas issued a preliminary, nationwide injunction blocking the enforcement of the Corporate Transparency Act (CTA) and its associated regulations. However, this is only an injunction which stops the enforcement of the filing requirements but does not erase the requirement to file. That means, if you go past the deadline, you will NOT pay a penalty nor will the enforcing agency have any legal grounds to go after you for not filing. STAY TUNED! Just because this was placed on hold does not mean we are out of the woods. This order can be reversed by a higher court. Get your ducks in a row and be ready to file in case that happens. The likelihood of the order being reversed is slim but it may happen and you should be prepared.
What documents do I need to file if the order is reversed?
You will need items like the legal business name, EIN, and business address. The owner's info includes their contact info, SSN, and a ready government issue ID card which must be non-expired. You can file your BOIR here , a portal provided by FinCen.
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