Belated Christmas Gift from the 5th Circuit U.S. Court of AppealsBOI reporting is in fact still suspended.
On December 23, 2024, a Federal Court of Appeals issued their decision to overturn the December 3rd preliminary injunction that suspended compliance with the Corporate Transparency Act (CTA) and what is commonly known as BOI reporting (Business Owner Information). Then, on December 26, 2024, the same court reversed their decision on their own accord and reinstated the injunction. Many consider this a belated Christmas gift, as it is estimated that around 70% of the over 32 million companies subject to BOI have not filed.
Companies subject to reporting BOI under the CTA are not required to do so at this time as the temporary injunction effectively remains in place nationwide.
Please refer back to our previous communications on the development of BOI reporting, and you can review current information on our website at storesoo.com/news where we will update you as BOI reporting, the court case, and legislation continues to develop. This situation has garnered a lot of headlines over the last week, so we wanted to ensure that you had a definitive summary that reinforces the fact that the temporary injunction is in fact in place, and that if you are subject to BOI reporting you do not have to file by December 31st, or the alternative date that was published this week by FinCEN of January 13, 2025, as the temporary injunction has been reinstated in full as of this communication (December 27, 2024).
There is much speculation on what may come of the CTA and BOI reporting in the coming administration, and it certainly faces an uncertain future. By way of background, BOI reporting was established by an act of Congress, and as such it must be overturned by the judicial system under constitutional law or Congress must act to reverse course.
As we have shared in early December, you have the choice to wait and see what transpires, or FinCEN is still accepting reporting and is encouraging filing. Regardless, the pressure of a deadline or decision is not in place at this time. If you would like to engage Blankenship to assist you with your BOI reporting you can contact us through this Form and we will reach back out to you to begin the process.
At this point, our Blankenship CPA Group Perspective for those who have not already filed is to wait and see what develops. And enjoy the rest of your holiday season! For additional information you can always reach out to your CPA here at the firm, or take a look at the history and related documentation at the Financial Crimes Enforcement Network website (fincen.gov/boi).
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