The U.S. Fifth Circuit Court of Appeals has reversed a nationwide preliminary injunction that prohibited the enforcement of the Beneficial Ownership Information (BOI) reporting requirement, allowing the deadline to be extended until January 13, 2025.
Prior to the court’s decision, a U.S. District Court had issued an injunction in December 2024, halting the Treasury Department from enforcing the BOI filing requirement. However, the Fifth Circuit Court has now lifted this injunction, giving reporting companies a new deadline to comply with the regulation.
The extension applies to different groups of reporting companies, including those created or registered before and after January 1, 2025. Companies that had previously been exempt from the original deadline will now have until January 13, 2025, to file their initial BOI reports.
The Fifth Circuit’s decision has implications for the Corporate Transparency Act (CTA), which aims to combat money laundering and other financial crimes by requiring companies to disclose beneficial ownership information. The court’s ruling suggests that Congress’ powers under the Commerce Clause are likely sufficient to justify the CTA, despite some challenges to its constitutionality.
While this decision resolves the preliminary injunction issue, additional challenges to the CTA remain pending in various courts. These include arguments over whether the Treasury Department has complied with administrative procedures and potential constitutional issues raised by the First and Fourth Amendments.
Source: https://www.forbes.com/sites/jayadkisson/2024/12/24/fincen-beneficial-ownership-reporting-january-1-deadline-back-on-so-file-now