Major Update on FinCEN BOIR Filing: Reporting Companies Can Opt for Voluntary Submission

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force.

However, reporting companies may continue to voluntarily submit beneficial ownership information reports. More information is available on FinCEN’s website at https://www.fincen.gov/boi.

In this blog, let’s discuss in detail about this major update and what it means for businesses.

The Recent Court Ruling

On Tuesday, December 3, 2024, the U.S. District Court for the Eastern District of Texas, Sherman Division, issued a nationwide preliminary injunction in the case Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.). The order:

1. Enjoins the Corporate Transparency Act (CTA), including enforcement of its beneficial ownership information (BOI) reporting requirements.
2. Stays all deadlines for compliance with the CTA’s BOI reporting obligations.

The Department of Justice, on behalf of the Department of the Treasury, has filed a Notice of Appeal as of December 5, 2024. 

While the injunction is in effect, FinCEN will not enforce the CTA, and businesses will not face penalties for failing to file BOI reports. 

Voluntary Submission: A Choice for Businesses

While the filing requirement is on hold, businesses may still decide to submit their BOI reports voluntarily. TaxBandits provides an easy-to-use platform for those who choose to proceed with voluntary filing.

If you’ve already prepared your report and are considering submitting it, TaxBandits ensures a smooth process for timely and accurate submissions.

How TaxBandits Can Assist

If you choose to submit your BOI report, here’s what you can expect from TaxBandits:

• Confirm Your Decision: You will be asked to acknowledge whether you would like to proceed with the voluntary submission of your BOI report.
• Submit Your Report: Once confirmed, we will file your report to FinCEN.
• Stay Updated: We will continue to monitor any updates from FinCEN regarding the filing requirements and keep you informed of any changes.

What Happens If You Choose Not to File Now?

If you decide not to file your BOI report at this time, you can hold off until further guidance is provided. There are no penalties for waiting during this period.

Keeping You Informed

TaxBandits is committed to keeping you updated as the situation evolves. We will provide timely information on any changes to the filing requirements so that you can make informed decisions for your business.

Whether you decide to submit your BOI report now or wait for further updates, TaxBandits is here to assist you with a simple and secure filing process. If you have any questions, our support team is available to help.