Federal Court of Appeals Reinstates Enforcement of BOI Reporting Requirement

The temporary suspension of the BOI reporting rule has been lifted, and reporting companies are once again required to file BOI reports.

On December 23, 2024, the federal Court of Appeals decided to end the preliminary injunction (effective December 3) that suspended the U.S. Treasury Department and FinCEN from enforcing the Corporate Transparency Act (CTA) and its BOI reporting requirements.

This means reporting companies are obligated to meet the BOI filing requirements by the required deadlines. Fortunately, the Department of Treasury has extended the reporting deadlines as follows per the below statement on the FinCEN BOI website.

New BOIR due dates are:

• Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. These companies would otherwise have been required to report by January 1, 2025.
• Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
• Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
• Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
• Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
• As indicated in the alert titled “Notice Regarding National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)”, Plaintiffs in National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)—namely, Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024)—are not currently required to report their beneficial ownership information to FinCEN at this time.

If you are one of the existing businesses that were in “wait and see” mode and have not yet filed your BOI report (if required to submit one), the good news is you have a little extra time to do so.

The January 13, 2025 deadline is quickly approaching, though! Take action now for peace of mind and to avoid the steep fees and penalties associated with noncompliance.

Please note that the information in this blog post is current as of December 24, 2024. However, this is an evolving situation, and things could change based on new activity related to the court order. Businesses should proactively monitor developments so they remain informed.