There have been multiple twist and turns regarding the BOI reporting requirements in the month of December. These are summarized as follows. We will keep you abreast of any and all future updates:
Tuesday, 12/17/2024: The House of Representatives released the draft Continuing Resolution(CR) proposing a one year extension of the BOI report filing deadline to 1/1/2026. The House is expected to vote as early as Thursday, 12/18/2024, and the Senate vote should follow shortly thereafter. Read more.
Thursday, 12/5/2024: The Department of Justice, on behalf of the Department of Treasury filed a formal notice of appeal to the Fifth Circuit Court, seeking a stay and challenging the recent injunction, noting that it prevents the Financial Crimes Enforcement Network (FinCEN) from enforcing BOI nationwide.
Tuesday, 12/3/2024: In the case of Texas Top Cop Shop, Inc., et al vs 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 BOI reporting requirements, and specifically, (2) stays all deadlines to comply with the CTA’s reporting requirements.
Background
Under the CTA, P.L. 116-283, which Congress passed in 2021 as an anti-money -laundering initiative, reporting companies must disclose the identity and information about beneficial owners of the entities. For new entities incorporated after 1/1/2024, reporting companies must disclose the identity of “applicants”- defined as any individual who files an application to form a corporation, limited liability company, or similar entity. Willful violations are punishable by a fine of $591per day, up to a maximum fine of $10,000, and two years in prison with similarly serious penalties for unauthorized disclosure.