Hello!
This is an update on the FinCEN Beneficial Owner Information (BOI) Report.
The BOI is a new one-time filing requirement for business owners to report their information to the IRS’s FinCEN department. The penalties for filing this report late can be quite steep.
On December 3rd, 2024, a federal judge in Texas issued a ruling that temporarilysuspended the enforcement of the Corporate Transparency Act nationally. This is not arepeal but a temporary stay of enforcement.
This situation resembles the Alabama case in March, in which the stay of enforcementwas limited to a small group of companies. One week after the ruling, the Department of Justice filed an appeal.
Federal judges can apply injunctions to either small groups or nationally. In the Texas case, due to its national implications, it’s anticipated that the Justice Department will file an appeal to temporarily lift the stay at likely the same speed as in the Alabama case.
Based on patterns in similar cases such rulings are often addressed by appellate courts quickly, often within weeks to months.
While the outcome of any appeal is uncertain, the Corporate Transparency Act’s purpose as a national defense tool and its resilience in previous legal challenges suggest that a repeal is unlikely.
Please note that this development is recent, and more information is unlikely to be available until FinCEN shares an update or files the appeal.
While this is still a fluid situation, it does not appear likely that the BOI requirement will be completely removed.
Completing the filing before the deadline is recommended to ensure you are still compliant and to prevent penalties, fees, and interest.
Right now, I am not providing services related to the BOI filing but I will keep you updated and be a resource for you and your business.
If you have any questions, please don’t hesitate to let me know.
Happy Holidays!
Happy Lifestyle Accounting 