Beneficial Ownership Information filing Requirement/Temporary Stay issued December 3rd, 2024. Important Information for Small Business Owners
We are getting a lot of calls about the new (not really, it’s just that no one really knew about it) Federal BOI/FINCEN reporting that many people are getting marketed pretty heavily on by many different types of reporting companies for fees from $50 to $200. It is my sincere hope that this requirement gets quashed in court, but for now, the mandatory filing requirement is on hold. You can choose to file voluntarily, but if you do not, that is fine while the stay is in place.
On December 3rd, 2024, a temporary injunction was issued that stays the forced filing requirements. It is up to you if you want to file; I’d ask the advice of legal counsel instead of responding to one of these companies emailing you to get at your wallet.
Here is the website for FinCen so you can see the source of the information: https://fincen.gov/boi
The first alert on the website you see explains the temporary injunction that stays forced filing. :
“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.
—
The Corporate Transparency Act (CTA) plays a vital role in protecting the U.S. and international financial systems, as well as people across the country, from illicit finance threats like terrorist financing, drug trafficking, and money laundering. The CTA levels the playing field for tens of millions of law-abiding small businesses across the United States and makes it harder for bad actors to exploit loopholes in order to gain an unfair advantage.
On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), a federal district court in the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction that: (1) enjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements, and, specifically, (2) stays all deadlines to comply with the CTA’s reporting requirements. The Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024.
Texas Top Cop Shop is only one of several cases in which plaintiffs have challenged the CTA that are pending before courts around the country. Several district courts have denied requests to enjoin the CTA, ruling in favor of the Department of the Treasury. The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional.
While this litigation is ongoing, FinCEN will comply with the order issued by the U.S. District Court for the Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
We will not be offering this filing service as I personally disagree with this requirement for many valid reasons. It is my sincere hope that the incoming Presidential Administration will squash this invasive requirement since many of the folks who launder money are exempt from this filig requirement which will negatively affect many small business owners (that is my personal opinion).
This is not legal advice-if you have questions, please consult with your attorney. But, I know you folks are getting hammered with marketing trying to get people to rush into filing.
Have a great Holiday Season!
Robin
