U.S. District Court Suspends Implementation of BOI Reporting Requirements
December 04, 2024
The U.S. District Court for the Eastern District of Texas has suspended the implementation of the Corporate Transparency Act’s (CTA) Beneficial Ownership Information (BOI) reporting requirements. Read more about this decision and the impact below.
- Corporate Transparency Act Blocked Nationwide by Texas Court (Bloomberg Tax)
- Nationwide injunction halts BOI reporting for now (Journal of Accountancy)
- Federal Court Enjoins Enforcement of the CTA Nationwide; Reporting Companies “Need Not Comply” with January 1 Deadline (National Law Review)
- AICPA BOI Resource Center (AICPA login required)
UPDATES:
December 6, 2024- On December 5, the Department of Justice filed a formal notice of appeal to the Fifth Circuit court, seeking a stay and challenging the injunction that prevents FinCEN from enforcing the BOI reporting nationwide. In response to the court decision and the subsequent appeal, the AICPA has released this statement.
December 9, 2024 - FinCEN has shared this update:In light of a recent federal court order reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports through FinCEN’s BOI E-Filing System at https://boiefiling.fincen.gov.
On Friday, December 6, FinCEN informed companies with system-to-system Application Programming Interface (API) access to transmit beneficial ownership information reports (BOIRs) to FinCEN that all API access to submit such reports was being suspended. FinCEN will be back in touch with these API providers with further guidance.
Additional information is available at Beneficial Ownership Information Reporting | FinCEN.gov.