Breaking: BOI Reporting Suspended

Beneficial Ownership Information, or BOI, reporting is a fairly new reporting requirement for certain companies. BOI refers to identifying the individuals who directly or indirectly own or control a company. BOI Reporting refers to reporting this information to FinCEN.

As of December 26, 2024, BOI Reporting is not currently required and companies may continue to voluntarily submit BOI reports.

Updates

December 26, 2024 Update

On December 26, 2024, FinCEN released another update regarding BOI reporting. According to this new update, another panel of the U.S. Court of Appeals for the Fifth Circuit reversed their earlier decision from December 23, 2024, which had temporarily paused a lower court’s ruling.

As a result, starting December 26, 2024, the lower court’s injunction is back in place and reporting companies are not currently required to submit BOI information to FinCEN but may do so voluntarily.

December 23, 2024 Update

On December 23, 2024, the federal Court of Appeals issued a decision which lifted the temporary block on Beneficial Ownership Information (BOI) Reporting that had been instituted on December 3, 2024. BOI Reporting is now mandatory once again for all reporting companies. Due to the temporary block, extensions for reporting companies to submit their data were announced. 

December 3, 2024 Update

On December 3, 2024, the U.S. District Court for the Eastern District of TX issued a preliminary injunction on BOI reporting. This means that the court temporarily blocked BOI reporting from being enforced across the country while the case is resolved.

What is the Corporate Transparency Act (CTA)?

The CTA is a federal law which requires that businesses disclose information about the people who own or control a company. This information is reported to the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) through a BOI Report.

What is Beneficial Ownership Information? 

Beneficial Ownership Information (BOI) refers to identifying the individuals who directly or indirectly own or control a company. BOI Reporting, as the name suggests, refers to reporting information regarding the ownership of a company. 

What are the deadlines to submit BOI Information?

The deadlines for submitting BOI Reports have been extended to the following dates: 

• Entities created or registered before January 1, 2024: Initial BOI reports must be filed by January 13, 2025.
  • Originally these entities were required to submit their BOI reports by January 1, 2025.
• Entities created or registered on or between December 3, 2024 and December 23, 2024: Initial BOI reports must be filed within 111 days of their creation or registration date.
  • Originally these entities had 90 days to submit their initial BOI report, but were given a 21 day extension due to the temporary block.
• Entities created or registered on or after January 1, 2024 and before January 1, 2025: BOI reports must be filed within 90 days of their creation or registration date.
  • Originally these 
• Entities created or registered on or after January 1, 2025: Initial BOI reports must be filed within 30 days of their creation or registration date. 
• Entities that qualify for disaster relief may have extended deadlines. 

What does this mean for businesses?

Reporting companies are not currently required to submit BOI INformation, but should be ready to do so by the deadlines given by FinCEN.

FinCEN provides a straightforward and efficient platform for e-filing BOI reports. Filing directly through FinCEN is:

• Quick: The process can take as little as 5 minutes to complete.
• Accessible: No existing account or prior testing is needed.
• Free: There are no filing fees.

For detailed information and to file your BOI report, please visit FinCEN’s official website:

https://www.fincen.gov/boi

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