Beneficial Ownership Information (BOI) reporting was set to become mandatory for most companies under the Corporate Transparency Act (CTA) starting January 1, 2024. This requirement aims to increase transparency and combat illegal activities like money laundering and tax evasion by requiring businesses to disclose their beneficial owners. A reporting company created or registered to do business before January 1, 2024, would have had until January 1, 2025, to file its initial BOI report whereas companies registered in 2024 or 2025 only had 90 days to file. However, recent developments have temporarily halted the enforcement of these rules.
What’s Happening Now?
On December 3, 2024, a federal court in Texas issued a preliminary injunction suspending the enforcement of the Corporate Transparency Act (CTA) nationwide. This means the requirement for businesses to file BOI reports, originally set to begin on January 1, 2025, is temporarily on hold while legal challenges proceed. FinCEN is allowing voluntary submissions, but mandatory reporting is currently paused.
What Should You Do Now?
If you haven’t submitted your BOI report yet: There’s no need to rush to file right now. The deadline for mandatory reporting is currently on hold, but we encourage businesses to stay informed as the legal situation unfolds. If you wish, you can still submit voluntarily, but it is not required at the moment.
- If you’ve already submitted your BOI report: Don’t worry! The federal court ruling does not invalidate any voluntary filings, and your submission remains on record with FinCEN. There’s no immediate action needed on your part, but we advise you to monitor the situation closely for further updates.
What’s Next?
We will continue to track this situation and provide updates as the legal challenges progress. Since the outcome of these challenges could change how and when businesses need to comply, it’s important to stay informed. For businesses that are unsure about their filing obligations or need further clarification, it’s advisable to consult with legal or tax professionals to ensure compliance once the situation is resolved.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. While we are a CPA firm and can provide expert guidance on tax and financial matters, we recommend consulting a qualified attorney for legal advice specific to your business or situation.
