Dec 12, 2024

Update: Beneficial Ownership Information Reporting – Deadline Stay – Voluntary Submission Only

Due to a Texas Court Decision on December 3^rd, 2024 FINCEN has issued the following statement. “In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”

Note the Litigation is ongoing and it is expected that filing requirements may re-open at some point during 2025, However the injunction issued by the court halts mandatory filing requirements of the Beneficial Ownership Information Reports (BOIR), and helpfully provides business owners time to better understand and prepare for the filing requirements.

For businesses that have all ready filed, there is no further action to take at this time
For a business that has not filed as of yet, there is no action at this time, but you should stay aware of any filing changes or announcements by FINCEN in regards to filing recommencement and upcoming potential deadlines

Background: Beginning on January 1, 2024, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the U.S. Department of the Treasury. For more information on the subscribed filing requirements see our previous release.

More Information on Filing Requirements – Click Here

As always we recommend you contact your legal counsel or your representative here at Levine Jacobs if you have any questions.

DISCLAIMER

Starting in 2024, the Corporate Transparency Act (CTA) took effect, and many corporations, limited liability companies, and other entities may be required to start reporting Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). Compliance requirements are available at https://www.fincen.gov/ including deadlines and potential severe penalties. PLEASE be advised our engagements do not include BOI reporting, nor any similar state-mandated reporting. Accordingly, we will not be preparing nor filing any such required reports, as they do not qualify as tax returns and such services may be considered the practice of law. However, we are available to discuss how we might assist you in planning to address this new reporting.