BOI reporting requirements on hold (yes, again.)

On December 26, a panel of the U.S. Court of Appeals issued an order vacating the Decision from the 23rd. See the previous article here for more information on the December 23rd stay of the injunction.

Yes, you read that correctly. The reporting requirements are on hold yet again. For now (as before), there is not a final ruling on whether companies will need to report BOI, so companies should still be ready to report as the lawsuit advances.

What has happened so far?

On December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., the U.S. District Court of Texas issued an order granting a nationwide preliminary injunction. Texas Top Cop Shop is only one of several cases that have challenged the Corporate Transparency Act ("CTA") pending before courts around the country. The CTA is the act that makes BOI reporting a requirement.

On December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction entered in the case of Texas Top Cop Shop, Inc. v. Garland, pending the outcome of the Department of the Treasury’s ongoing appeal of the district court’s order. FinCEN immediately issued an alert notifying the public of this ruling, and recognizing that reporting companies may have needed additional time to comply with beneficial ownership reporting requirements, FinCEN extended reporting deadlines to January 13th. On December 26, 2024, however, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s December 23, 2024 order granting a stay of the preliminary injunction. As of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect, and reporting companies are not currently required to file beneficial ownership information with FinCEN.

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