Special News Brief
On December 26, 2024, the federal court of appeals reinstated the injunction blocking the reporting deadline for the Corporate Transparency Act’s Beneficial Ownership Information (BOI) submissions. This makes the report filing voluntary yet again. At this point the January 13, 2025, deadline communicated just a few days prior is on hold.
FinCEN has the following alert included on their website:
“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.”
Stay abreast of the latest alerts on the FinCEN website.
We will continue to monitor this volatile compliance requirement set forth by FinCEN and provide updates. For the time being, reporting companies may continue to file voluntarily but are not currently required to do so. We recommend staying prepared in case of changes in ruling.
As a reminder, The BOI reporting requirement, effective January 1, 2024, is part of the Corporate Transparency Act (CTA) of 2021. This law mandates that most small businesses report their ownership information to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The CTA aims to strengthen anti-money laundering efforts and prevent activities like terrorist financing, corruption, and tax fraud.
Please be advised that your entity may have a filing obligation with the Federal Government. You may need to file a Beneficial Ownership Information Report (BOI Report) with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).
- EXEMPTIONS – There are 23 types of entities exempt from the BOI reporting requirements. These entities include publicly traded companies meeting specified requirements, many nonprofits, and certain “large operating”
- ***To qualify for the large operating company exemption, an entity must have more than 20 full-time employees in the United States, must have filed a Federal income tax or information return in the United States in the previous year demonstrating more than $5,000,000 in gross receipts or sales, and must have an operating presence at a physical office in the United States.
BOI Report Filing Process
To file the BOI Report, please login to https://www.fincen.gov/boi and follow the instructions and you will need to provide a copy of your license/passport.
BOI Demo Video: Five-Minute Demo: How to File a Beneficial Ownership Information (BOI) Report. This video walks through how to report beneficial ownership information (BOI) using the Financial Crimes Enforcement Network (FinCEN)’s E-Filing System.
If you have questions about how this impacts your compliance obligations, feel free to reach out to our team or check in with your law firm should they have additional perspective.