The Latest on BOI Reporting Requirements: Updates from REBLAW

The Latest on BOI Reporting Requirement

UpOn December 26, 2024, the US Court of Appeals for the Fifth Circuit issued a pivotal order in Texas Top Cop Shop, Inc. et al. v. Garland et al., temporarily halting the beneficial ownership information (BOI) reporting requirements mandated by the Corporate Transparency Act (CTA). This decision has created yet another twist in the ongoing litigation surrounding the CTA, leaving businesses uncertain about compliance deadlines and obligations.

Key Developments in the Case

December 3, 2024 - The US District Court for the Eastern District of Texas imposed a nationwide preliminary injunction, blocking enforcement of the CTA's BOI reporting requirements.

December 23, 2024 - The Fifth Circuit stayed the preliminary injunction pending appeal, effectively reinstating the BOI reporting requirements.

December 24, 2024 - The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) extended certain BOI reporting deadlines in response to the December 23 decision.

December 26, 2024 - The Fifth Circuit vacated the December 23 stay, once again pausing the BOI reporting requirements.

What Does This Mean for Businesses?

The current pause in the BOI reporting requirements provides temporary relief for businesses that were scrambling to meet initial filing deadlines. However, the litigation is far from over, and the government may pursue further emergency measures with the Fifth Circuit or appeal to the US Supreme Court. This could lead to yet another shift in the reporting timeline.

What Should Businesses Do Now?

Given the uncertainty and rapid developments in this case, businesses should:

1. Assess Applicability - Determine whether they are subject to BOI reporting requirements under the CTA.

2. Prepare for Compliance - Develop internal systems to gather and file the required information in the event reporting requirements are reinstated.

3. Monitor Updates - Stay informed about court decisions and FinCEN guidance that may impact deadlines and enforcement.

Although the January 13, 2025, deadline for initial BOI reports is currently paused, it remains unclear whether FinCEN will issue additional extensions if reporting requirements resume.

Final Thoughts

REBLAW will continue to monitor developments in the Texas Top Cop Shop litigation and provide timely updates. Companies should take this opportunity to review their compliance strategies and prepare for potential reinstatement of the reporting rules.

If you have questions about how these changes impact your business, or need assistance with BOI reporting compliance or any other business law challenges, contact REBLAW today. Our experienced attorneys are here to help you navigate these complex legal issues and keep your business on track.dates from REBLaw