FinCEN’s website currently gives the following message:
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.
It’s been a whirlwind back and forth since an initial nationwide injunction was put into place by a U.S. District Court for the Eastern District of Texas on December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al. The following actions have since taken place:
The Department of Justice (DOJ) appealed the nationwide enforcement pause on December 5, 2024.
On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit reversed the nationwide injunction, pending the outcome of the ongoing appeal of the order.
Treasury and FinCEN extended reporting deadlines to give filers more time with an impending January 1, 2025, deadline.
On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit reversed their own decision, reinstating the nationwide pause on the CTA and BOI reporting enforcement.
On December 31, 2024, the DOJ asked the Supreme Court to intervene and lift the nationwide injunction pending outcome of the ongoing appeal.
A January 10, 2025, deadline was put in place by the Supreme Court for the plaintiffs to respond to the DOJ request to limit the injunction. As expected, the response disagreed that the injunction should be limited or lifted. Several others submitted support to the Supreme Court that the CTA and BOI reporting requirements are unconstitutional.
Oral arguments for the appeals case in the Fifth Circuit regarding the nationwide injunction are set for late March.
It remains advisable to continue the information gathering process, especially for complex situations, in the event there is yet another abrupt reversal. More information on BOI reporting can be found HERE.
Please reach out to your RubinBrown adviser with any questions or concerns.
Published: 01/14/2025
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