On Dec. 3, 2024, in the case of Texas Top Cop Shop, Inc., et al v. Garland, et al, a federal district court in Texas granted a nationwide preliminary injunction that stayed all deadlines to comply with the Beneficial Ownership Information (BOI) Report for the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). The BOI reporting requirements are part of the Corporate Transparency Act (CTA), which was created in 2021 to identify illicit activity such as tax fraud, money laundering and financing for terrorism by capturing ownership information for specific businesses in the U.S. Beneficial owners (any individual who directly or indirectly exercises substantial control over the reporting company, or owns or controls at least 25% of the ownership interests) had been required to begin submitting personal identification information from January 1, 2024; reports for companies registered to do business before January 1, 2024, were to have been due by January 1, 2025, while companies created on or after January 1, 2024, were required to submit their BOI within 90 calendar days of business registration. While the preliminary injunction remains in effect, the January 1, 2025, deadline as well as the rolling 90-day deadline will not be enforced, and reporting for all companies is voluntary.
For more information on domestic and foreign reporting company qualifications as well as the list of exemptions, see the Small Entity Compliance Guide to BOI Reporting Requirements or the FinCEN webpage: https://www.fincen.gov/boi