The US Fifth Circuit Court of Appeals has reimposed an injunction on the new deadline for FinCEN’s Beneficial Owners Information (BOI) report, halting it until further notice. The original deadline, January 13, 2025, was set to apply to most reporting companies, but the court’s decision means that many entities will now be exempt from this requirement.
The BOI report is a result of the Corporate Transparency Act, signed into law in January 2021. Initially, the reporting requirements were suspended due to an injunction filed by Texas Top Cop Shop, Inc., et al. v. Garland, et al. However, after a three-judge panel ruled that the government had made a strong showing on the constitutionality of the CTA, the original injunction was lifted.
The Fifth Circuit’s decision has reinstated the original deadline for most reporting companies formed before January 1, 2024. These entities were initially given an extension to January 13, 2025. However, due to a disaster relief designation in areas affected by hurricanes, some companies may not have to comply with this deadline.
The future of the BOI report’s implementation remains uncertain, and it is unclear how long the new deadline will be delayed. The court case is being closely watched, and businesses with beneficial ownership interests should remain vigilant for any updates on compliance requirements.
Source: https://www.jdsupra.com/legalnews/new-deadline-for-fincens-boi-report-is-5461904