The US Court of Appeals for the Fifth Circuit has reinstated the enforcement of Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act, effectively overturning a nationwide preliminary injunction that had blocked their implementation. This decision will force small businesses to comply with the new regulations by January 1.
According to Beth Milito, Executive Director of NFIB’s Small Business Legal Center, this ruling will bring “massive chaos” for small business owners, who must now meet the reporting requirements before a scheduled deadline. The National Federation of Independent Business (NFIB) is already working to appeal this decision and provide relief from the mandate.
The Corporate Transparency Act affects over 32 million small businesses in the country, including NFIB’s nearly 300,000 member businesses. NFIB supports the Repealing Big Brother Overreach Act, which aims to repeal the CTA and permanently exempt small businesses from the beneficial ownership requirements.
Source: https://www.nfib.com/news-article/fifth-circuit-appeals-court-reinstates-boi-reporting-for-small-businesses