boi reporting - currently voluntary

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".

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.
 

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.