The U.S. Fifth Circuit Court of Appeals is currently reviewing a Texas court’s decision to enjoin the enforcement of the beneficial ownership information (BOI) reporting requirement. This case, Texas Top Cop Shop, Inc. et al. v. Garland (December 26, 2024), U.S. Ct. of Appeals, Fifth Circuit, Case No. 24-40792, is being expedited. In the meantime, the requirement to file a BOI report with FinCEN is on hold.

What Does This Mean for Me?

• No Penalties for Non-Compliance: As the law stands today, penalties cannot be imposed against businesses that fail to file BOI reports with FinCEN. However, it’s important to note that this situation could change at any moment.
• Original Deadline Has Changed: We have been advising you that all new businesses must file these reports by January 1, 2025, or face penalties of up to $591 per day. Due to the Texas district court’s ruling, this is no longer the case, at least for now.

With these new developments, it leaves businesses with three options to consider:

1. Do Not File: If you choose not to file the report, no penalties can be imposed against you at this point.
2. Already Filed: If you have already filed, there is nothing more you need to do. We do not have any information at this stage as to whether FinCEN will destroy all previously provided information.
3. Ready to File: If you haven’t filed but have all the information ready and would like to file, you are free to do so. Please let us know if you would like our assistance with this.

Although businesses do not have to file BOI reports while the court’s order is still in effect, you do have the option to continue to file your reports while this issue works its way through the courts. 

It is possible that this requirement could be reinstated with very little time to file. Therefore, we recommend that you continue to gather all necessary information to be ready to file should the reporting requirement be reinstated

Feel free to contact us if you have any questions concerning this issue. We are here to help you navigate these changes and ensure your business remains compliant.