The Latest News on BOI Filing
–
December 17, 2024
BOI Filing Requirement Suspended
On Dec. 3, a federal court in Texas ruled to halt the implementation of the beneficial ownership information (BOI) filing requirement that was part of the Corporate Transparency Act (CTA).
The court said that the CTA is likely unconstitutional and issued a preliminary injunction barring enforcement of the CTA and its reporting requirements. The ruling states that "reporting companies need not comply with the CTA's Jan. 1, 2025, BOI reporting deadline pending further order of the Court."
On Dec. 16, the Department of Justice (DOJ) filed an emergency request for a stay of the injunction with the Fifth Circuit Court of Appeals. Of interest here is the explicit request to remove the injunction to allow the original Jan. 1, 2025, deadline to stand which would suddenly turn back "on" the deadline to avoid potential $591 per day penalties.
Dearth of Filed Reports
With less than two months left for most small businesses to file beneficial ownership information (BOI) reports, the Financial Crimes Enforcement Network (FinCEN) has received only 6.5 million of the expected 32 million reports, a FinCEN representative said last week. New businesses created in 2024, which are under tighter deadlines to file the reports than older businesses, account for many of those. Read more
Deadline Extension Requested
- On Dec. 4, the AICPA, NJCPA and other state CPA societies sent a letter to the Department of Treasury and FinCEN asking that they, within their power, delay the BOI reporting deadline by one year (to January 1, 2026).
- On Nov. 12, the AICPA sent a letter to the House Financial Services Committee and the Senate Banking Committee expressing concerns with the upcoming Jan. 1, 2025, deadline for reporting BOI to FinCEN. The letter asks for the rule to be suspended for at least a year so the small business community can become better informed of the filing requirement.