Update: Corporate Transparency Act (BOI Reporting) is On Hold

Updated 12/30/2024

The U.S. Court of Appeals for the Fifth Circuit has reinstated a nationwide injunction that temporarily halts the enforcement of Beneficial Ownership Information (BOI) reporting requirements. This means that reporting companies are not currently required to file BOI reports with FinCEN and will not face penalties for non-compliance while the injunction remains in effect.

This situation is evolving, and the injunction could be lifted at any time.  We advise that you continue gathering the necessary information to file BOI reports, as you may need to submit them on short notice if future rulings favor the government. The AICPA recommends staying prepared and maintaining readiness to file if the injunction is lifted again.

Why It Matters

Compliance remains critical. Once the courts and FinCEN resolve the situation, failure to meet filing requirements could result in:
• Civil penalties of $591 per day,
• Criminal fines of up to $10,000, and
• Up to two years in prison.

Posted 12/27/2024

On Monday, December 23, the United States Court of Appeals for the Fifth Circuit reinstated the enforceability of the Corporate Transparency Act (CTA). In the case of Texas Top Cop Shop, Inc. v. Garland, the Fifth Circuit overturned the lower court’s nationwide temporary injunction against the CTA, initially issued on December 3, 2024.

FinCEN reacted to the Fifth Circuit’s decision by releasing an advisory that extended the beneficial ownership information (BOI) reporting deadlines as follows:

Existing Companies:

• Entities formed or registered before January 1, 2024, now have until January 13, 2025, to submit their first beneficial ownership information reports to FinCEN. (These entities were previously expected to report by January 1, 2025.)

Recent Formations:

• Companies established or registered in the U.S. on or after September 4, 2024, with a deadline between December 3, 2024, and December 23, 2024, are given until January 13, 2025, to file their initial beneficial ownership details with FinCEN.
• Companies set up or registered in the U.S. on or after December 3, 2024, and before December 23, 2024, receive an additional 21 days beyond their original filing deadline to provide their first beneficial ownership information to FinCEN. (These companies were otherwise required to report within 90 days from their formation or registration date.)

• Entities formed or registered in the U.S. on or after January 1, 2025, must file their initial beneficial ownership information with FinCEN within 30 days following actual or public notice that their creation or registration is effective.

The reinstatement of the CTA means that affected businesses must now comply with its reporting requirements. If your company falls under the CTA’s scope, Kirsch CPA Group is available to help you with the BOI reporting.

If you have any questions about this announcement, please contact your Relationship Manager at 513-858-6040.