Beneficial Ownership Information Reporting – Update

On Tuesday, Dec. 3, 2024, a Federal district court issued a decision (Texas Top Cop Shop, Inc. v. Garland) that found that the CTA is likely unconstitutional. The decision includes an injunction, which applies nationally, prohibiting the enforcement of the CTA and the BOI reporting rule.

Although FinCEN is barred from enforcing BOI filing requirements while the case is pending, the deadlines are technically still in effect. Considering this, our suggestion and best practices dictate that, at a minimum, businesses should continue to gather the required information required to file and report.  If the injunction is lifted, prepare to file the BOI report. While it is unlikely that the injunction will be lifted prior to the outcome of the proceedings, we advise being prepared in the event that there is a reversal.

However, businesses can still choose to voluntarily submit BOI reports. Visit U.S. Treasury Department’s Financial Crimes Enforcement Network for the most recent Alert – Impact of Ongoing Litigation – Deadline Stay – Voluntary Submission Only.

Our team is staying tuned to updates and we will relay such as guidance becomes available.

Author: