The BOI reporting mandate roller coaster ride continues.
A new panel of the U.S. Fifth Circuit Court of Appeals is reviewing the lower court’s decision to enjoin the enforcement of the beneficial ownership information reporting requirement. (Texas Top Cop Shop, Inc. et al. v. Garland (December 26, 2024) U.S. Ct. of Appeals, Fifth Circuit, Case No. 24-40792) The review will be expedited, but in the interim, the new panel reversed the previous panel’s decision to allow the BOI reporting mandate to continue pending the court of appeal’s review.
As the law stands today, penalties cannot be imposed against businesses that fail to file BOI reports with FinCEN.
However, as we have seen over this last month, this can change at any point. We will keep you informed of the latest developments. FinCEN has not yet issued any updates on this latest development, but we assume that they will continue to allow businesses to voluntarily file.
If you choose not to file until you are required to do so, we recommend that you continue to gather all necessary information to be ready to file should the reporting requirement be reinstated. As we saw this past week, when the BOI reporting requirement was temporarily reinstated, FinCEN only gave businesses a short extension of the reporting deadlines.
The Court of Appeal’s latest order is available at:
www.ca5.uscourts.gov/opinions/unpub/24/24-40792..pdf
This article is reproduced with permission from Spidell Publishing, Inc.