boi reporting - currently voluntary

According to https://home.treasury.gov/news/press-releases/sb0038 :

March 2, 2025

The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.

“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent.  “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”

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According to https://fincen.gov/boi :

"Alert: Impact of Ongoing Litigation – Deadline Stay – Voluntary Submission Only 

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.

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The Corporate Transparency Act (CTA) plays a vital role in protecting the U.S. and international financial systems, as well as people across the country, from illicit finance threats like terrorist financing, drug trafficking, and money laundering.  The CTA levels the playing field for tens of millions of law-abiding small businesses across the United States and makes it harder for bad actors to exploit loopholes in order to gain an unfair advantage.

On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), a federal district court in the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction that: (1) enjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements, and, specifically, (2) stays all deadlines to comply with the CTA’s reporting requirements. The Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024.

Texas Top Cop Shop is only one of several cases in which plaintiffs have challenged the CTA that are pending before courts around the country. Several district courts have denied requests to enjoin the CTA, ruling in favor of the Department of the Treasury. The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional.

While this litigation is ongoing, FinCEN will comply with the order issued by the U.S. District Court for the Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information reports."

NOTICE: This update affects some information previously announced below such as *"PENALTIES FOR VIOLATING BOI REPORTING" & "IMPORTANT DEADLINES".

Take the first step towards compliance by reaching out to us today!

Our competitive pricing starts at just $150 per Beneficial Ownership Information (BOI) report, tailored to your entity structure, number of owners, and preparation time.

Don’t risk costly penalties—trust our skilled team to handle your FinCEN Beneficial Ownership Information reporting. We’re ready to help you navigate this vital process with ease and confidence. 

Have questions? Check out our Frequently Asked Questions section below for quick answers!

Starting in 2024, the Financial Crimes Enforcement Network (FinCEN) will require most U.S. companies to submit their beneficial ownership information (BOI). This crucial mandate arises from the Corporate Transparency Act, aimed at bolstering the fight against money laundering, terrorist financing, and other financial crimes. Non-compliance is not an option, as it could lead to severe penalties, including fines of $500 per day, capped at $10,000. 

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*SEE "BOI REPORTING - CURRENTLY VOLUNTARY" SECTION ABOVE FOR MOST CURRENTLY UPDATED INFORMATION.
 

This important regulation affects a diverse range of business entities, such as: 

• Corporations
• Limited Liability Companies (LLCs)
• S Corporations
• Limited Liability Partnerships (LLPs)
• Other entities registered by filing documents with any U.S. state 

Most for-profit businesses must act swiftly to ensure compliance unless they qualify for specific exemptions, which can easily be confirmed on the official FinCEN website. Don’t wait – understanding your obligations can protect your business from unnecessary penalties and enhance your credibility in the market. 

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*SEE "BOI REPORTING - CURRENTLY VOLUNTARY" SECTION ABOVE FOR MOST CURRENTLY UPDATED INFORMATION.
 

*SEE "BOI REPORTING - CURRENTLY VOLUNTARY" SECTION ABOVE FOR MOST CURRENTLY UPDATED INFORMATION.

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Companies that ceased operations as legal entities or foreign companies that ended their registration before January 1, 2024, do not need to file a BOI report.

However, reporting companies that were legally established or foreign companies registered after January 1, 2024, must submit a BOI report, even if they ceased to exist before their initial filing deadline. Compliance is essential to avoid penalties and meet regulatory requirements.

Lopez & Company is dedicated to providing you with expert assistance for your FinCEN BOI report filing, helping make the process seamless by securely collecting all essential information, ensuring your report is both accurate and promptly submitted. 

*SEE "BOI REPORTING - CURRENTLY VOLUNTARY" SECTION ABOVE FOR MOST CURRENTLY UPDATED INFORMATION.

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Under the Corporate Transparency Act, individuals who willfully violate and do not comply with the beneficial ownership information (BOI) reporting requirements can face civil penalties of up to $591 per day.

Additionally, criminal penalties can include up to two years in prison and fines up to $10,000 for willfully failing to file a report, submitting false information, or neglecting to update previously reported data.

Understanding these serious consequences is essential for compliance.  [Updated April 18, 2024] 

To get started or for more information, contact us today. Our pricing begins at $150 per BOI report and is based on the entity structure, number of owners, and preparation time.

Ensure your compliance and avoid costly penalties by entrusting your FinCEN Beneficial Ownership Information reporting to our experienced team. Let us help you navigate this crucial process with confidence.

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*SEE "BOI REPORTING - CURRENTLY VOLUNTARY" SECTION ABOVE FOR MOST CURRENTLY UPDATED INFORMATION.