Alert: BOI reporting is out?
On December 3, 2024, a district court issued a nationwide preliminary injunction against enforcement of the Corporate Transparency Act (CTA). That law required corporations and LLCs not otherwise exempt to register with the Treasury at FinCEN… Beneficial Ownership Information (BOI) reporting. But this isn’t the end of the story. The government filed a notice of appeal with the appellate court, and FinCEN says “deadline stay—voluntary submission only.” Note: There are cases in other courts challenging CTA that are still pending.
Millions of small businesses are subject to a new FinCEN reporting rule starting January 1, 2024 (explained in my blog). Under this reporting rule, a newly formed “reporting company” (an entity created by filing a document with a state), unless exempt, must file their information within 30 days of formation. But FinCEN proposed to extend this period to 90 days for reporting companies in 2024 (the 30-day limit would apply to new reporting companies in 2025). #IdeaoftheDay
