BOI Rollercoaster Ride Reporting Update

On Tuesday, December 24, 2024 we sent a blog blast to our clients and newsletter subscribers indicating that FinCEN confirmed that reporting companies are not required to file BOI reports. 

On Monday, December 23, 2024, two days before Christmas, the Fifth Circuit Court of Appeals issued a stay on the December 3, 2024 injunction which then meant that the December 31, 2024 filing requirement was back in effect and businesses had to file their BOI information by midnight Dec. 31, 2024. After the injunction was lifted on December 23, FinCEN had extended the Jan. 1, 2025, reporting deadline to file their BOI reports with the Treasury Department until Jan. 13, 2025. 

However, late on Thursday, December 26, 2024, the day after Christmas, in yet another turn of events, the Fifth Circuit Court of Appeals reinstated the nationwide injunction, thus suspending the reporting deadline once again for the required reporting companies to file their BOI reports with FinCEN.

In a statement on Friday, FinCEN said, “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.”

So, what does this mean for your business? It means that your business is not currently required to file its BOI and there is no punishment, i.e., fines, if you do not file. However, given the quickly changing nature of the rulings and potential deadlines, we are strongly encouraging our clients to consider simply filing the BOI report out of an abundance of caution. The information requested by FinCEN is relatively basic business ownership information that identifies owners and direct and indirect controllers of companies to help prevent scams, money laundering and other financial crimes. We are available to assist on an expedited basis. If you have any questions and/or concerns, please feel free to reach out.

Sincerely,

The Hamilton Law Small Business Team