February 2025 – BOOI Reporting Injunction Lifted

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BOI Reporting Injunction Lifted

 

OVERVIEW

 

We are reaching out with a time-sensitive update of the latest legal and legislative developments regarding the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA).

 

On Tuesday, February 18, 2025, the U.S. District Court lifted the nationwide injunction that was in place. As a result, the beneficial ownership information reporting requirements under the Corporate Transparency Act are once again in effect.

 

CONSIDERATIONS

 

·     For most reporting entities, the new deadline to file an initial, updated, and/or corrected BOI report is now March 21, 2025.

·     Further, FinCEN has stated that over the next 30-day period, it will assess its options to further modify deadlines or reporting requirements for lower-risk entities, including many U.S. small businesses, while prioritizing reporting for those entities that pose the most significant national security risks.

·     As a reminder, the FinCEN has indicated that penalties for not meeting the BOI reporting requirements include

·     (1) civil penalties of up to $606 per day that a violation is not remedied

·     (2) a criminal fine of up to $10,000, and/or

·     (3) imprisonment of up to two years

·     Legislation is still in process to delay the beneficial ownership information mandatory reporting requirement due date to January 1, 2026 for entities formed prior to January 1, 2024. The bill passed the House and has now been sent to the Senate, so another decision on BOI reporting appears to be pending.

 

NEXT STEPS

 

Because this is still an ongoing issue with pending legislation, and as the due date has now been reinstated to March 21, 2025 – we strongly encourage anyone who owns an entity and has a reporting requirement to timely file their BOI reporting by March 21, 2025.

 

If you have any questions regarding this development and how it may apply to you, we strongly encourage you to consult with your legal counsel for guidance as soon as possible.