Previously on BOI Reporting Requirements, the new hit courtroom drama – Is BOI reporting required or not?

All this back and forth in the courts with BOI is exhausting!

It’s hard enough as professionals in an industry that needs to know this stuff for our clients to keep up. We can’t imagine how confusing and stressful this is for a small business owner.

To be clear, we want to first assure all business owners that as of this publication date the BOI reporting requirements are not enforceable. You will not be penalized for not filing.

However, that can change at any moment.

But before we get to that, let’s briefly go through all the drama that has led us here. It really does read like a weekly drama series.

The Legal Drama

Throughout 2024, business owners were preparing to comply and file their Beneficial Ownership Information (BOI) report. The government was happy and everything was going according to plan. Then suddenly everything changed on December 3rd when a district court in Texas ruled the Corporate Transparency Act (CTA) was likely unconstitutional, putting a hold on the CTA’s BOI filing requirement. As far as business owners were concerned, they didn’t need to file anymore. Great.

The government obviously disagreed and filed an appeal with the district court. Asking the court to keep the BOI reporting requirements deadline active during the appeal process. 

The government also decided to escalate the issue to the Fifth Circuit before even getting a decision from the district court to keep the deadline while the appeal is pending.

A few days later the district court denied their appeal and request to keep the BOI filing requirements. So still no need to file a report by the end of the year for business owners.

Then on the 23rd of December the Fifth Circuit granted the government’s request and businesses now had one week to file their BOI report. That very same day the government, through its reporting agency, the Financial Crime Enforcement Network (FinCEN), gave business owners a whole 13 days longer to file their BOI reports. So generous of our government.

You could sense the panic rising among business owners. Now they had to get all their info together and file the report.

As you can imagine, those working on behalf of business owners completely disagreed and made it known to the Fifth Circuit. Well… just three days after they granted the government’s request, the Fifth Circuit changed their mind. Essentially a motions panel within the Fifth Circuit said they overstepped.

Businesses again are not required to file a report. All BOI reporting requirements under the Corporate Transparency Act are currently not enforceable.

The government, not wanting to wait on the appeal in the district court, escalated their case even further up to the Supreme Court on December 31st. 

Meanwhile, on January 7th, a totally separate court case in the Eastern District of Texas ruled on behalf of the plaintiffs and in effect, the nationwide hold on the BOI reporting requirements still stands. Still no need to file the report.

In the meantime the Supreme Court did their thing and on January 23rd agreed with the government in the first case mentioned from Texas and overturned the hold on the BOI reporting requirements while the case is on appeal.

But…

The Supreme Court’s ruling did not take into account the hold on filing from the other court case in Texas.

So there is still no enforceable deadline for the filing of BOI reports.

You are free to voluntarily file your BOI report with FinCEN, but you are under no obligation to do so.

Now you’re all caught up on the drama.

What a ride. And it’s not even close to being over!

What Now?

We’re simply waiting now for the final decision on the appeal in the Texas district court, more from the Supreme Court to be sure, or any other random case that pops up out of nowhere.

These are your current options:

– Voluntarily file your BOI report anyways

Or

– Gather all the information you’ll need to file so you’re ready in case it’s back on

Or

– Do nothing and just wait to see what happens

If you are not sure you would be required to file a BOI report, jump here to find out. We don’t want you stressing for no reason. If you find out your business is exempt, then the outcome of these court cases doesn’t matter. 

For all the latest or for specific questions that weren’t answered here, check out our BOI FAQ page.