BOI Injunction Reinstated, FinCEN Enforcement Halted

Here is the recent history.

The bill passed Friday, December 20th, to avert a federal government shutdown. DIDN'T include a one-year extension to the deadline for companies to file Beneficial Ownership Information (BOI) reports. The extension had been included in an initial version of the bill to extend the filing requirement to avoid a $591/day failure to file penalty that goes into effect on January 1, 2025, for an additional year.

There WAS an injunction issued by a Texas Federal Court preventing FinCEN from enforcing the CTA or imposing any penalties for non-compliance. The Department of Justice (DOJ) had asked the Fifth Circuit Court of Appeals to rule on its request for a stay by December 27, 2024, "to ensure that regulated entities can be made aware of their obligation to comply before January 1, 2025." If the injunction is lifted on December 27, approximately 27 million businesses will be scrambling to file before the deadline.

On December 23, 2024, the Fifth Circuit Court of Appeals issued a stay on the district court’s nationwide injunction against the Corporate Transparency Act (CTA). This stay reinstates the BOI reporting requirements and prior deadlines at this time.

The court found that the government is likely to succeed on appeal, citing Congress’s authority under the Commerce Clause and the critical need for corporate transparency to combat financial crimes like money laundering and terrorism financing.

Monday, December 23, 2024, FinCEN extended the filing deadline to January 13th for most companies.? As of December 23rd, 2024, approximately 24 million businesses have 22 days to file a report to avoid a penalty of $591/day.

A federal appeals court on Thursday December 26th reinstated a nationwide injunction halting enforcement of beneficial ownership information (BOI) reporting requirements, reversing an order the same court issued earlier this week.

In its latest order, the Fifth Circuit Court of Appeals said it was reinstating a lower court's injunction "in order to preserve the constitutional status quo while the merits panel considers the parties' weighty substantive arguments," referring to the panel of judges who will decide the appeal.

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If you just want to avoid the BOI Pandemonium and Voluntarily File, We are ready!