LEGAL UPDATE – U.S. Appeals Court Lifts Nationwide Injunction – BOI Reports Now Due By January 13th

U.S. Appeals Court Lifts Nationwide Injunction – BOI Reports Now Due By January 13^th

We previously reported that a federal judge in Texas issued a nationwide injunction blocking the federal government from enforcing the anti-money laundering law that required most small business owners to file beneficial ownership reports with the Financial Crimes Enforcement Network (“FinCen”) under the Corporate Transparency Act.  The government appealed that ruling and the US Court of Appeals for the 5^th Circuit overturned the injunction on December 23 saying that the law can now be enforced.  In response, FinCen has stated its intent to enforce the law but is extending the deadline to file reports until January 13, 2025, for most businesses.  See https://www.fincen.gov/boi for more information and to file or update your report.

If you have not filed your report and are not exempt, you need to do that by January 13, 2025.  If you have already filed your report but your information has changed, you need to file your update by the new deadline.  The willful failure to file the report (including updates) by the deadline can be punished by up to 2 years in jail, a $10,000 fine or both.  Non-willful violations are subject to a fine of $591 per day for each day the report has not been filed past the deadline.

FinCen is also warning business owners to beware of fraudulent attempts to solicit them and their companies into giving up personal or confidential information under the guise of registration compliance or assistance.   For this reason you should file your report yourself directly at FinCen’s website, or hire advisors you know personally to help you.  Be wary of solicitations from people you do not know, even if their correspondence is official looking.

Most small businesses are required to file this report.  There are exemptions to filing for large businesses, those in certain highly regulated industries like insurance companies and non-profits.  HB attorneys are available to answer questions or assist you with filing your report if needed, but the process is designed for people to file these reports on their own.

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: