Editor’s note: The details about Beneficial Ownership Information at the top of this post were accurate as of Thursday, Jan. 2, 2025. Since this is an evolving issue, the deadlines and details could change. We’ll do our best to keep you updated, but for the latest news about the issue, we recommend following a trustworthy news source. 

If you’ve gotten whiplash trying to stay up to date about the latest Beneficial Ownership Information reporting requirements, you’re not alone. The courts have gone back and forth on the legality and deadlines.

But for now, businesses won’t have to file BOI reports with the Financial Crimes Enforcement Network — aka FinCEN. And they don’t face any liability for not filing the reports.

As a quick recap:

  • In early December, a Texas federal court ruled that the federal government can’t enforce the Corporate Transparency Act anywhere in the country.
  • On Dec. 23, part of the 5th Circuit lifted that injunction when the federal government appealed the Texas court’s ruling.
  • Then, on Dec. 26, a different portion of the same appeals court put the injunction back into place.

There is a new court date set for late March, so we’ll see what happens after that. But for now at least, no one needs to file a BOI report.

 

Editor’s note: The information below is for historical purposes only and is no longer accurate.

A Texas federal court ruled earlier this week that the federal government can’t enforce the Corporate Transparency Act anywhere in the country.

The CTA would have required more than 32 million U.S. companies to submit “beneficial ownership information” to the Department of Treasury’s Financial Crimes Enforcement Network by Jan. 1, 2025.

In the Dec. 3 ruling for Texas Top Cop Shop, Inc. vs. Garland, the court said Congress “exceeded its legislative powers when it enacted the CTA.”

The ruling probably isn’t the last on the CTA. The court entered only a preliminary injunction, which means it could reconsider in the future. What’s more likely to happen is that the federal government will appeal the Texas court’s decision with the U.S. Court of Appeals for the Fifth Circuit. The appeal process could go as high as the Supreme Court.

However, for now, companies won’t have to comply with the CTA’s BOI reporting requirements.

If you have questions about the CTA or BOI, reach out to us.