Boy, oh, BOI!
Boy, oh, BOI, the Beneficial Ownership Information Reporting is delayed by two weeks and remains enforceable.
The 5th Circuit Court of Appeals has granted the government’s emergency motion to stay a Texas district court’s nationwide injunction against the Corporate Transparency Act (CTA).
CTA requires nonexempt companies to report their beneficial owners. Before the Texas court’s injunction, specified businesses formed before 2024 were required to file their initial beneficial ownership information (BOI) report with the Financial Crimes Enforcement Network (FinCEN) by Jan. 1, 2025, and new businesses were required to file within 30 days.
The stay means the CTA enforcement is now in effect.
The court found that the government is likely to succeed on appeal, that leaving the injunction in place could cause significant harm, and that the public interest in preventing financial crimes outweighs any harm to the plaintiffs. The case will proceed quickly to the next available oral argument panel.
In response to the Court decision of Dec. 23, the Financial Crimes Enforcement Network (FinCEN) has announced the following updated deadlines for beneficial ownership information (BOI) reporting:
Extended Deadlines for Existing Companies
Companies created or registered before Jan. 1, 2024, must file their initial BOI reports by Jan.13, 2025 (the deadline is extended to Jan. 1, 2025).
Extensions for Recently Registered Companies
Companies registered between Sept. 4, 2024, and Dec. 23, 2024, now have until Jan. 13, 2025, to file their BOI reports.
Companies registered between Dec. 3, 2024, and Dec. 23, 2024, receive an additional 21 days from their original filing deadline.
New Companies Starting in 2025
Companies registered on or after Jan. 1, 2025, must file their BOI reports within 30 days of their creation or registration becoming effective.
Additionally, plaintiffs in National Small Business United v. Yellen are not required to report their BOI to FinCEN.
This update follows the Fifth Circuit’s stay of a nationwide preliminary injunction against the Corporate Transparency Act (CTA), pending the Department of the Treasury’s appeal.
For more on Beneficial Ownership Information Reporting (BOIR) contact me today.
