The ongoing legal battles surrounding the Financial Crimes Enforcement Network’s (FinCEN) Beneficial Ownership Reporting requirements have garnered significant attention, particularly in light of challenges to the constitutionality of the Corporate Transparency Act (CTA) by various citizens. On December 3, 2024, a U.S. District Court issued a nationwide preliminary injunction against the CTA in the case of Texas Top Cop Shop, Inc. v. Garland. However, the injunction was immediately appealed, eventually leading to conflicting decisions from the Fifth Circuit Court of Appeals. However, as of this writing, the injunction remains in place.
Consequently, reporting companies are currently not obligated to submit beneficial ownership information to FinCEN and will not face penalties for non-compliance during this period. It is important to note that companies may still opt to voluntarily provide this information despite the existing injunction.
Should this injunction be lifted in the future, FinCEN has indicated that there will be a brief grace period for companies to file their Beneficial Ownership Information Reports (BOIR). Therefore, it is crucial for reporting companies and individuals affected by these developments to remain vigilant and prepared to comply when required to do so.
Fraud Warning: We strongly advise you to be cautious if you are considering voluntarily submitting a BOIR or if you will need to submit a BOIR if the injunction is lifted. There have been reports of fraudulent individuals impersonating FinCEN or other organizations with the intention of unlawfully obtaining personal information. To guarantee your safety and compliance with regulations, it is recommended to utilize only official government resources or seek our help.
For further updates and additional information regarding these matters, we encourage you to visit FinCEN’s official website at: https://fincen.gov/boi
Thank you for your attention to this important issue. Should you have any questions or should you want assistance filing a BOIR, please do not hesitate to contact us directly. We will be glad to help you.