Starting in early December and accelerating over the week between Christmas, the start of Hannukah, and New Years Day, the courts have kept everyone disoriented about the filing requirements for reporting beneficial owners information to the U.S. Treasury Department’s Financial Crimes Enforcement Network by the December 31, 2024 deadline. In short, the reporting deadline has again been postponed.
Below is a brief summary of recent December actions:
- In early December, a preliminary injunction was issued by the U.S. District Court for the Eastern District of Texas, stopping the requirement to submit a BOI report.
- On December 23, the 5th Circuit U.S. Court of Appeals overturned the December 3 ruling. So, for a few days, FinCEN was requiring reporting, but with an extended deadline of January 13 to give companies a little more time to comply (presumably due to confusion brought by the differing court actions and decisions).
- However, on December 26, a different panel of the 5th Circuit vacated the December 23 order. In other words, the preliminary injunction is back in place and BOI reports are not currently required.
FinCEN confirms this conclusion on its website, noting:
- Accordingly, as of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not currently required to file beneficial ownership information with FinCEN (emphasis added) https://www.fincen.gov/boi
However, in response, on December 30, the Department of Justice filed an emergency request with the U.S. Supreme Court to reverse once again the injunction against enforcement of the BOI reporting requirements. No decision has been announced yet; but stay tuned.
The current reporting rule could change (apparently) at any time, but it is not expected to result in a deadline any earlier than the January 13, 2025 deadline FINCen instituted on December 23 that existed for only a few days.
Additionally, please note that Schneider Downs has also received information that some businesses are receiving fake BOI notices sent by fraud artists. The FINCen website has more information about these attempts and how to spot them. Companies need to stay vigilant against criminals looking to take advantage of confusing and changing reporting requirements, and strongly safeguard sensitive financial, business, and personal reporting information.
Additionally, please note that Schneider Downs has also received information that some businesses are receiving fake BOI notices sent by fraud artists. The FINCen website https://www.fincen.gov/boi has more information about these attempts and how to spot them. Companies need to stay vigilant against criminals looking to take advantage of confusing and changing reporting requirements, and strongly safeguard sensitive financial, business, and personal reporting information.
As a reminder, any reporting requirements under FINCen are not tax filings under the Internal Revenue Code. We encourage you to consult with your legal counsel for additional information and filing requirements regarding beneficial owner reporting obligations.
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