Alert: Impact of Ongoing Litigation with BOI Reporting

December 10, 2024 - 1 minute read
BOI

We wanted to bring your attention to an important update regarding the filing of beneficial ownership information with FinCEN.

Summary of Update:

A recent federal court order related to ongoing litigation has temporarily suspended the requirement to file beneficial ownership information with FinCEN. As a result, reporting companies are not currently obligated to submit these reports and will not face penalties for non-compliance during this period.

Court Injunction Details:

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued an injunction that halts the enforcement of the Corporate Transparency Act (CTA) and stays all deadlines for compliance. It’s important to note that while the Department of Justice has filed an appeal and other courts have upheld the constitutionality of the CTA, FinCEN will adhere to the injunction as long as it remains effective.

Voluntary Submission Option:

Although compliance is currently optional, companies may still choose to voluntarily submit their beneficial ownership information reports during this period. This can help maintain transparency and ongoing due diligence practices.

Future Updates:

We will keep you informed of any developments regarding this matter and provide updates as necessary. Our team is closely monitoring the situation and will promptly notify you of any changes to the filing requirements.

Should you have any questions or concerns about this update, please feel free to reach out to our dedicated support team. We are here to assist you throughout this process.