BOI Reporting Requirement On Pause - For Now
The Corporate Transparency Act (CTA) triggered new, broad-ranging reporting requirements, including filing Beneficial Ownership Information (BOI) Reports for certain entities via the Financial Crimes Enforcement Network (FinCEN) online portal. If you own an LLC, a Limited Partnership, or a small business, these requirements may directly impact you.
Back on March 1, 2024, a federal judge held that the CTA is unconstitutional, effectively placing the BOI reporting on hold for National Small Business Association members.
Further, on December 3, 2024, a federal judge issued a sweeping order prohibiting the federal government from enforcing the Corporate Transparency Act (CTA) anywhere in the country. Should that ruling withstand appeal, reporting companies would not need to comply with the CTA’s January 1, 2025, BOI reporting deadline, and FinCEN would not be able to enforce any of the CTA’s penalties for willful noncompliance against entities or individuals.
Despite this ruling, some CPAs are still recommending that filing be completed out of an abundance of caution, since the ruling has been appealed to a higher court. Ultimately it is each business owner’s decision how to proceed, but if you do decide to report, you can do so either by self-reporting and/or connecting with your CPA or attorney (who may directly support the filings if required).
For more in-depth details about the filing process, please see the CTA Filing Guidelines linked here. We won’t be able to file these reports on your behalf, but please let us know if you have any questions or need further assistance when doing so.