BOI Rules Are Back In Effect – WAIT! No They’re Not

January 3, 2025

All over the business world, accountants, lawyers, financial executives and journalists are scrambling to keep up with the latest soap opera in the financial community: what’s happening with the Corporate Transparency Act (CTA) and its ownership reporting rules.

Here’s where we are: In brief, the much-debated CTA imposed heavy reporting requirements on a wide range of companies, starting in 2025. The businesses had to report beneficial ownership information to the Financial Crimes Reporting Network. But on December 3, a federal court issued an injunction against the law. The reporting requirement was put on hold, but not for long.

Just three weeks later, the CTA was back in action. As the AICPA said on its website: “On Dec. 23, 2024, the Fifth Circuit Court lifted the injunction, allowing FinCEN to enforce BOI reporting.”

Now, in a new twist, the CTA is back on hold. Per the AICPA’s Dec. 27, 2024 website posting: “Appeals court reinstates injunction that halts BOI enforcement.”

UPDATE: On December 31, 2024, the Department of Justice (DOJ) filed an emergency application with the Supreme Court to stop the preliminary injunction that barred the government from enforcing the Beneficial Ownership Information (BOI) reporting. If the DOJ’s request is approved, the government can enforce the Corporate Transparency Act while appeals make their way through the system. It is unclear at this time what the filing due date will be if the Supreme Court stays the initial injunction so companies must be prepared to file their BOI report within a short time frame if the injunction is stayed. If you previously contacted Siepert for assistance with filing your BOI report, please make sure you have provided us with all necessary information for filing your form.

So what has changed?

Everything is back to the way it was after the first federal court put the law on hold. The latest injunction halts the enforcement of beneficial ownership information (BOI)  reporting requirements leaving businesses to decide whether or not to file. In a statement, the AICPA said it “is seeking guidance from FinCen and maintains its advice for those assisting clients with BOI filings to gather information required from clients and be prepared to file in case the injunction is lifted again,” so don’t be surprised if your accountant or lawyer continues to request documents required for BOI filings. It’s hard to say what the new deadlines will be if the latest injunction is lifted, so be prepared to file at a moment’s notice.

This is not necessarily the last word. It’s possible there will be additional court actions, or that the CTA will be modified or even repealed. But that’s in the future. For now,  companies should contact their legal and financial advisors to make sure they’re on-track to meet the FinCEN requirements if BOI reporting resumes.

Updates are also available on the AICPA’s BOI information page.