UPDATE: BE READY! BOI FILING INJUNCTION CHALLENGED BY DOJ
As previously reported, on 12/3/24 a federal district court in Texas issued an order halting the enforcement of the Corporate Transparency Act (CTA) along with the requirement to file Beneficial Ownership information (BOI) reports with the Financial Crimes Enforcement Network (FINCEN.).
The court’s injunction, issued in Texas Top Cop Shop, Inc. vs. Garland, applies nationwide. FINCEN has indicated it will comply with the injunction and BOI reporting is currently voluntary.
However, soon after the injunction, the Department of Justice (DOJ) motioned the Texas District Court to stay its injunction pending Appeal. The DOJ also formally Appealed to the 5th Circuit Court of Appeals requesting an expedited ruling. A stay of the injunction would effectively reinstate the BOI fling rules and associated deadlines.
On 12/17/24, the District Court already ruled, denying the DOJ’s motion. The Appeals Court has indicated that it intends to expedite its ruling to either leave the injunction in place, narrow its scope, or issue a stay by 12/27/24. In the event that a stay or narrowing is issued, there is hope for a filing grace period in light of the short timeframe for which to file.
In the meantime, Congress was expected to act on relief for the 1/1/25 deadline for BOI filing by including a one-year extension in its Continuing Resolution bill to avoid a Government shutdown. Although a bill was passed, it did NOT include an extension of the BOI reporting deadline.
Due to the uncertainly, for those who have not file their BOI reports, we suggest that you gather all pertinent information, as we have previously described in our prior communications, and have it ready to file in the event the reporting rules are reinstated.
Buckno Lisicky & Company will continue to keep you updated with further developments.
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