Corporate Transparency Act BOI reporting update – Jan. 26, 2025
Beneficial Ownership Information report for small businesses still not currently required
by Pinedale Online!
January 26, 2025
As of January 24, 2025, FinCEN has announced that reporting companies are still not currently required to file beneficial ownership information with FinEN and are not subject to liability if they fail to do so while a recent federal court order remains in force. Reporting companies may still voluntarily submit their BOI reports.
From the FinCen website (update January 24, 2025): "On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction i5ssued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports."
As court challenges have gone back and forth, the Biden Administration’s Department of the Treasury extended the filing deadline to January 13, 2025. However, other rulings placed a nation-wide injunction on enforcement. If the court challenges ultimately fail, affected business will need to file this report with FinCEN. With this filing requirement, small business owners face jail time and fines of up to $10,000 for not reporting who their owners are. The court battles continue into the new year. It is uncertain at this time if newly sworn-in President Donald Trump will weigh in on this regulation.
Source: https://fincen.gov/boi
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