FinCEN Updates: BOI Filing
Ongoing litigation in Texas stops the clock on BOI filing for small businesses.
The U.S. District Court in the Eastern District of Texas granted a nationwide preliminary injunction suspending enforcement of the Corporate Transparency Act (“CTA”):
- Stating that the CTA is likely unconstitutional and should not be enforced;
- Requesting to stay all deadlines for companies to comply with the CTA
What Does This Mean?
The preliminary injunction temporarily pauses the BOI filing requirement under the CTA.
In their statement, FinCEN confirms that “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.”
What's Next?
Until a final decision is reached in the courts, reporting companies are not required to report BOI to FinCEN. However, reporting companies should be prepared to report their BOI if the pause is lifted and a new deadline for reporting is announced.
For more information about what FinCEN BOI is, check out our previous post here.
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Contact North Star Law Group for assistance with your business and to stay up to date with reporting deadlines.
Thank you to Law Clerk Vivian Kramer for her contributions to this post.