UPDATE: Appeals Court Reinstates Injunction that Halts BOI

UPDATE: Appeals Court Reinstates Injunction that Halts BOI Enforcement

December 27, 2024

The Corporate Transparency Act (CTA) which took effect on January 1, 2024 required "reporting companies" in the United States to disclose information about their beneficial owners to the Treasury Department's Financial Crimes Enforcement Network (FinCEN). In May 2024, a lawsuit was filed claiming that Congress exceeded its authority under the Constitution in passing the CTA.

Reported, on December 3rd in the Texas Top Cop Shop, Inc., et al. v. Merrick Garland, Attorney General of the United States, et al., Judge Amos Mazzant of the United States District Court (Eastern District of Texas/Sherman Division) issued a preliminary nationwide injunction barring the enforcement of the Corporate Transparency Act (CTA).

Previously reported December 23rd, the Nationwide Injunction is lifted and filing deadlines are reinstated. Financial Crimes Enforcement Network of the U.S. Department of Treasury (FinCEN) may again enforce the CTA. FinCEN has not extended any filing deadlines. Therefore, all reporting companies should file immediately any beneficial ownership information reports (BOIRs) that were already due, and reporting companies formed prior to 2024 should file their BOIRs by January 13, 2025 (extended from January 1, 2025).

As of December 27th, the federal appeals court on Thursday reinstated a nationwide injuction halting enforcement of beneficial ownership information (BOI) reporting requirements, reversing an order the same court issued earlier this week. FinCEN issued an updated alert on its BOI information page, saying that companies can voluntarily submit BOI reports.

Resources for consideration: Appeals court reinstates injunction that halts BOI enforcement

< Older Post

Newer Post >

This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

Adequately Disclose Your Asset Transfers on a Gift Tax Return

By Katrina Arona • April 10, 2025

When making transfers of business interests or other assets to family members, there’s a three-year period where the IRS can challenge their values for gift tax purposes. During that time, the tax agency can claim the transfers originally treated as nongifts were actually gifts or partial gifts.

Are You Eligible for the Self-Employed Health Insurance Deduction?

By Katrina Arona • April 4, 2025

If you are self-employed there could be a chance that you are eligible for the self-employed health insurance deduction. Keeping in mind that the deduction can't exceed the net income you earn from your business.