LEGAL UPDATE – BOI Reporting Rule is on Ice After Federal Court’s Nationwide Injunction

by | Dec 6, 2024 | Insight, News

BOI Reporting Rule is on Ice After Federal Court’s Nationwide Injunction

On December 3, 2024, a Texas Federal Court issued a nationwide preliminary injunction blocking the Financial Crimes Enforcement Network (“FinCEN”) from enforcing its Beneficial Ownership Information (“BOI”) Reporting Rule under the Corporate Transparency Act (“CTA”). The BOI Reporting Rule set a January 1, 2025, deadline for companies to report detailed personal ownership and management information to the Federal Government unless the company qualified for one of the Rule’s exemptions. Because of the Court’s December 3 injunction, companies are not required to file BOI Reports unless and until a court says otherwise.

Here’s a summary of what you need to know about the Court’s injunction:

  • The injunction includes a nationwide bar to FinCEN’s enforcement of the BOI Reporting Rule.
  • You are not required to file a BOI Report until further action by the court, which may never happen.
  • The Court’s ruling is only preliminary and could be reversed by an appeals court, but we believe that is unlikely.
  • You can still file a BOI Report voluntarily if you choose to do so.
  • We don’t expect it, but there is a small chance the injunction gets reversed with little notice, which means you would have to quickly file your company’s BOI Report.

Frequently Asked Questions:

  • What if I want to file my company’s BOI Report now? – We will help you file the BOI Report if you choose to do so voluntarily. However, you are not required to file the BOI Report until further notice by the court.
  • How will I know if the court’s order is reversed and the new deadline to file my company’s BOI Report? – We plan to send legal updates if anything changes, but you should also watch for news related to the BOI Reporting.
  • Will Harpst Becker be able to file my company’s BOI Report if the court’s order is reversed? – We will do our best to help you quickly file a report if that ever happens.
  • What if I already filed my company’s BOI Report? –You now have no obligation to update any information previously reported unless and until further notice. At this time, we don’t know what will happen to the BOI information that was already filed with FinCEN.

 

The business practices team at Harpst Becker, LLC is here for your company’s legal needs.  If you have questions, or need further information, please feel free to contact a member of our business practices team:

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