BOI Reporting Update - 12/30/24

As previously noted, on December 3rd, 2024 the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against enforcement of the CTA’s reporting requirements. On December 23rd, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay pending appeal of that injunction, requiring BOI information to be reported to FinCEN.  Later the day, FinCEN extended certain deadlines relating to filing BOI Reports.

However, in a December 26th order issued by a different panel of the U.S. Court of Appeals for the Fifth Circuit, the nationwide injunction was reinstated, putting a pause on BOI reporting and vacating the December 23rd order. While the merits panel weighs the substantive issues, the Fifth Circuit believes the injunction is necessary to preserve the constitutional status quo. As such, FinCEN cannot enforce the Corporate Transparency Act (CTA) at this time. This means that reporting companies aren’t currently required to file beneficial ownership information. However, reporting companies may continue to voluntarily submit their BOI reports.

At this time, we urge reporting companies to pay attention to additional updates and proceedings in this and other cases.  If not exempt from reporting, reporting companies should continue to gather the necessary beneficial ownership information in case they should need to file in the future as a result of the injunction being lifted or modified.

Bell & Company, P.A. will be following the Court’s stay, but if you wish to have us continue to assist with your BOI reporting matters or questions, please reach out to Ashtyn Pike.