Nationwide Beneficial Ownership Information Reporting Back on Hold
RAPID CITY, S.D., December 27, 2024 (Ecnetnews.com)
–
In an unexpected development, the merits panel of the Fifth Circuit Appeals Court on December 26th essentially reinstated a nationwide injunction for Corporate Transparency Act (CTA) Beneficial Ownership Information Reporting (BOIR). This marked a sharp reversal from just three days earlier, when the court had granted the Government’s motion to “stay” the preliminary injunction and reinstated filing requirements.
This means that for all businesses nationwide, the crucial requirements to file BOIR have once again been temporarily suspended. The recently adjusted deadline of January 13, 2025 that applies to most businesses is essentially “paused” and no longer relevant as this legal battle continues.
The court explained its decision as necessary “to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments“. The court also expedited the appeal to the “next available oral argument panel“, which it appears could be the week of January 6th based upon the court’s published schedule.
Given the rapid-fire recent legal developments around this reporting, further changes are highly possible. The status of the injunction or additional delays could shift again as courts continue to address the constitutional challenges to the CTA.
So where do you go from here? The two primary paths forward are as follows:
-
Prepare to file your BOIR at a moment’s notice – pending further legal resolution of this high-stakes filing requirement.
-
File your BOIR voluntarily – ensuring compliance now avoids last-minute filing stress and possible civil and criminal penalty exposure if the requirement is ultimately upheld and you miss the filing window.
Ultimately, this reporting requirement is high-stakes, with onerous penalties that include civil fines of up to $591 per day, criminal fines of up to $10,000 per report, and up to two years of imprisonment. As such, if you choose to wait to file your BOIR, it is imperative that you monitor this legal battle for future daily developments. For a full copy of the most recent court decision – see this LINK.
Secure Compliance provides advanced technology solutions for professionals and businesses filing BOIR with FinCEN. We seek to make gathering information and filing BOIR as painless and hassle-free as possible.
For more information, please visit www.securecompliance.us or contact:
Paul Freidel
info@securecompliance.us
(605) 646-3531
Source: Secure Compliance
