We hope you had a lovely holiday week with your family. As we were all celebrating, a lot was going on regarding BOI reporting!
Background:
The CTA mandates that many corporations, limited liability companies (LLCs), and other entities report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). The initial deadline for existing entities to comply was January 1, 2025.
Recent Developments:
-
- December 3, 2024: A U.S. District Court in Texas issued a nationwide injunction, temporarily halting the enforcement of BOI reporting requirements, citing potential constitutional concerns.
- December 23, 2024: The Fifth Circuit Court of Appeals lifted the injunction, reinstating the BOI reporting requirements. In response, FinCEN extended the reporting deadline for most entities to January 13, 2025, acknowledging the need for additional time due to the recent legal uncertainties.
- December 26, 2024: A different panel of the Fifth Circuit vacated the December 23 order, effectively reinstating the preliminary injunction and putting the BOI reporting requirements on hold again.
Current Status:
As of December 26, 2024, the BOI reporting requirements are on hold nationwide. Entities are not currently required to file BOI reports with FinCEN until further notice.
Recommendations:
Given the fluid nature of this situation, we recommend the following:
-
- Stay Informed: Monitor updates from FinCEN and legal advisories to remain aware of any changes to the reporting requirements.
- Prepare Documentation: While filings are currently on hold, it is prudent to gather the necessary information so you can comply promptly if the requirements are reinstated.
- Consult Professionals: Reach out to your legal or financial advisors to understand how these developments may impact your specific circumstances.
We will continue to keep you updated on any further changes. Please do not hesitate to contact us at theKFORDgroup with any questions or concerns.
Wishing you a Very Happy, Successful 2025!