UPDATED: Temporary Injunction Regarding BOI Reports: How Does this Affect Your Business?
LATEST UPDATE - as of March 5th 2025
Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies
In light of the recent decision by the US District Court for the Eastern District of Texas to stay the national injunction regarding the enforcement of the Corporate Transparency Act and setting a March 21, 2025 deadline for reporting companies to file their initial Beneficial Ownership Information (“BOI”) report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network, the Treasury Department announced yesterday (March 2, 2025) that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the BOI reporting rule “under the existing regulatory deadlines.”
Additionally, the Treasury Department has stated that it will be issuing a proposed rule intended to narrow the scope of the BOI reporting requirement to foreign reporting companies only and that they will not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either.
LATEST UPDATE - as of February 26th, 2025
The Return of the BOI Reporting Requirement
Initial Reports Now Due March 21, 2025
On February 18, 2025, the US District Court for the Eastern District of Texas stayed the national injunction regarding the enforcement of the Corporate Transparency Act.
What this means is that reporting companies who are required to file a Beneficial Ownership Information (“BOI”) report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) and who have not already done so now have until March 21, 2025 to file their initial BOI report with FinCen.
Those reporting companies that fail to comply with BOI reporting requirements could face significant penalties, including fines of up to $500 per day for failure to file and criminal penalties for willfully providing false or incomplete information (fines up to $10,000 and imprisonment for up to 2 years).
Please note that the United States House of Representatives passed the Protect Small Businesses from Excess Paperwork Act of 2025 (HR 736) on February 10, 2025, which would extend the original deadline for the BOI reports from January 1, 2025 to January 1, 2026. The United States Senate has not passed HR 736 as of today’s date. If the Senate were to pass HR 736, it would still need to be signed into law by the President.
Prepared by Kevin Thwing and Jennifer Duettra, Miller & Law, P.C. Please do not hesitate to contact our office if you have any questions. Miller & Law, P.C. 303.722.6500
LATEST UPDATE - as of December 30th, 2024
An Update Regarding Beneficial Ownership Reports
It has been a roller coaster week for businesses seeking certainty with respect to the BOIR filing requirements of the Corporate Transparency Act.
On December 23, 2024, the Fifth Circuit Court of Appeals lifted the injunction put in place by the Federal District Court and reinstated the requirements that all entities file their BOIRs under the CTA. FinCEN responded by extending the filing deadline to January 13, 2025.
However, on December 26, 2024 the Court of Appeals reversed direction and vacated its December 23 order.
Therefore, the original injunction remains in place and until further court action is taken, FinCEN is prohibited from enforcing the requirements of the CTA with respect to BOIRs and businesses are not required to comply with the CTA’s BOI reporting requirements.
Update prepared by Kevin Thwing and Jennifer Duettra, Miller & Law, P.C. Please do not hesitate to contact our office if you have any questions.
Additional details from the original article:
Important News Regarding BOI Reports
Please be advised that a US District Court in Texas has recently issued a preliminary and nationwide injunctive order that the enjoins (prohibits) the enforcement of the Corporate Transparency Act (CTA) and provides that reporting companies are not required to file their Beneficial Ownership Information (BOI) Reports at this time.
At this time, please note that this injunction is temporary and not permanent. The U.S. government has already filed a notice of appeal with the court.
Please note that the Financial Crimes Enforcement Network (FinCEN), the governmental agency responsible for enforcing the CTA, issued a statement saying that while the preliminary injunction remains in effect, "reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information reports."
The case is Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.). A copy of the decision may be found at https://law.justia.com/cases/federal/district-courts/texas/txedce/4:2024cv00478/230466/30/
Prepared by Kevin Thwing and Jennifer Duettra, Miller & Law, P.C. Please do not hesitate to contact our office if you have any questions.
*This article is intended for informational purposes only and should not be construed as legal advice. Individuals involved should consult with legal professionals for specific guidance tailored to their circumstances.
Thank you for reading!
Do you still have questions regarding Beneficial Ownership Information (BOI) Reports?
Reach out to our office today to speak to a legal professional on the matter.
Comentarios