UPDATE: As of late December 26, 2024, a court ruling has once again blocked the enforcement of the Corporate Transparency Act and the BOI reporting requirements. Click here for more information.
After enforcement of the Corporate Transparency Act’s Beneficial Ownership Information (BOI) filing requirements was suspended earlier in December by a Federal judge in Texas, the U.S. Court of Appeals for the Fifth Circuit has ruled to reverse the injunction as of December 23, 2024. This ruling has immediately reinstated all BOI requirements and deadlines for business owners.
In light of the ruling, the U.S. Treasury Department and Financial Crimes Enforcement Network (FinCEN) announced the original January 1, 2025 filing deadline will now be moved to January 13, 2025. This new date applies to all eligible reporting companies that were created or registered prior to January 1, 2024.
Deadlines have also been extended in two other circumstances:
Before the injunction, deadlines were already extended for eligible businesses operating in areas severely impacted by Hurricanes Milton, Helene, Francine, Debby, and Beryl. Those affected businesses should abide by whichever deadline comes later. See www.fincen.gov/boi for full details.
New reporting companies created or registered on or after January 1, 2025 still have 30 days to comply with their initial BOI filing requirements.
Failure to comply with FinCEN’s filing deadlines can result in steep daily fines. If your business has a complex structure or many owners, consult with your attorney or accountant and advisor to meet your initial and ongoing BOI reporting obligations.
While FinCEN unveiled the BOI reporting requirements and deadlines in early 2023, the agency has faced a rollercoaster of legal challenges. As part of the Corporate Transparency Act (CTA), the ultimate purpose of a secure BOI database is to hinder money laundering, tax evasion, and other illicit financial crimes. On December 3, 2024 a federal judge ruled the CTA and its BOI filing requirements unconstitutional, which resulted in a nationwide suspension of the filing requirements while FinCEN appealed the judgment. During the suspension, businesses were suggested to voluntarily submit their BOI date to FinCEN, but the deadline was no longer enforceable. However, just about a week away from the original January 1st deadline, the injunction was removed. Given the back-and-forth uncertainty and the timing, FinCEN is granting twelve extra days for existing businesses to meet the filing deadline.
More resources, such as Frequently Asked Questions (FAQs), exclusions, fraud warnings, and ongoing updates are posted at www.fincen.gov/boi.
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