BOI Update: Court Blocks Enforcement of Reporting Requirements
BOI Update Alert:
A recent ruling by a Federal U.S. District Court in Texas put a preliminary injunction preventing the enforcement of the CTA and BOI reporting requirement. Pending the final outcome of the proceedings, FinCEN is barred from enforcing the BOI deadline
Key Take Aways:
The court ruling found that the CTA was “likely unconstitutional”.
While the CTA is not currently enforceable, the court decision didn’t repeal the Act.
Further proceedings are ongoing and the Department of Justice has the right to appeal both the injunction and the final decision of the court.
What This Means for You:
Companies currently aren’t required to comply by the upcoming deadline of January 1, 2025, while the injunction is in place.
It is possible, however unclear whether retroactive penalties could be assessed for late filings.
There is no penalty for voluntary compliance if you have already filed or choose to file during the injunction.
It is advisable to continue gathering the necessary information and be prepared to file if the injunction is lifted either before or after the deadline.
What’s Next:
We’ll continue to monitor the situation and keep you informed on any updates and provide you with further analysis and recommendations.