Major Update on FinCEN BOIR Filing: BOI Reporting Requirements for Small Businesses Halted—Again

Updated FinCEN Notice (December 26, 2024):

In light of a recent federal court order, reporting companies are not currently required to file Beneficial Ownership Information (BOI) with the Financial Crimes Enforcement Network (FinCEN). These companies are not subject to liability for non-compliance while the court order remains in effect. However, businesses still have the option to voluntarily submit BOI reports. Learn More

BOIR Halt: Court Ruling and Timeline of Events

Here are the updates from different dates about the halt and reinstatement of the BOI reporting.
The National Federation of Independent Business and other groups have long criticized the BOI reporting requirements as overly burdensome. This led to ongoing litigation, notably the case Texas Top Cop Shop Inc. et al v. Garland et al.

December 3, 2024

Earlier this month, on December 3, 2024, a federal district court in Texas issued a preliminary injunction, halting the enforcement of BOI reporting and reporting companies would need not comply with the Jan. 1, 2025, BOI reporting deadline pending a further order of the court.

December 23, 2024

For a brief period, this injunction was overturned by the Fifth Circuit Court of Appeals on December 23, 2024, effectively reinstating the requirement, allowing the Corporate Transparency Act’s reporting requirements to move forward while the government’s appeal is still underway. FinCEN even extended the filing deadline to January 13, 2025, to accommodate businesses.

December 26, 2024

However, on December 26, 2024, another panel of the Fifth Circuit vacated the December 23 stay, reinstating the preliminary injunction. FinCEN subsequently confirmed:

“As of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect. Reporting companies are not currently required to file beneficial ownership information with FinCEN.”

Will This Be Back in Effect Again?

The short answer: it’s uncertain.

The Fifth Circuit’s latest order reinstates the preliminary injunction to “preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.” In simpler terms, the court is still reviewing the case, and no final decision has been made. It’s possible the BOI reporting requirements could return, depending on the outcome of the legal proceedings.

What Should You Do?

While the injunction remains in effect, businesses are not obligated to file BOI reports. However, voluntary submissions are still allowed. If you’ve already prepared your report or are considering filing voluntarily, TaxBandits offers an easy-to-use platform for submitting your BOI reports. Our solution ensures a smooth, accurate, and timely filing process for businesses choosing to comply.

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 updates from FinCEN. Currently, there are no penalties for failing to comply.

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.