Not to be outdone by Katy Perry’s 'Hot N Cold', the Corporate Transparency Act (CTA) is once again on ice as the merits panel of the Fifth Circuit Appeals Court reinstated an injunction on December 26th putting Beneficial Ownership Information Reporting (BOIR) filings on hold nationwide. This reversal was issued just three days after the court granted the Government’s motion to “stay” the preliminary injunction and reinstated filing requirements.
The requirement for businesses nationwide to file BOIR has been temporarily suspended once again. The revised deadline of January 13, 2025, which previously applied to most businesses, is effectively on hold and no longer applicable while this legal dispute unfolds.
The merit panel explained their decision as necessary “to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments”. The court has fast-tracked the appeal to the “next available oral argument panel”, which, based on the court's published schedule, is possible to occur during the week of January 6th.
As the courts sort out BOIR, it’s possible that the volatility of these legal developments may be ongoing, with ultimate filing dates and possibly even the requirements themselves to some extent hanging in the balance. At a moment’s notice, the status of the injunction or additional delays may shift again as courts continue to weight the CTA’s constitutionality.
So, what next? Two realistic options for Business Owners are as follows:
1) Be ready to file your BOIR promptly – as legal developments unfold, keep pace with this crucial filing requirement. Want help getting ready so you can file at a moment’s notice? Email us at CTA@freidel.tax for BOIR peace of mind.
2) Voluntarily file your BOIR now – ensure compliance now, avoiding last-minute stress and reducing the risk of civil and criminal penalty exposure if the requirement is upheld and the deadline is missed for your filings. You can file your reports now at https://boiefiling.fincen.gov. If you’d like us to help you file now, drop us an email at CTA@freidel.tax.
This reporting requirement carries significant consequences, including civil fines of up to $591 per day, criminal fines of up to $10,000 per report, and potential imprisonment for up to two years. If you opt to delay filing your BOIR, it is crucial to closely monitor this ongoing legal case for daily updates. To read the latest court action, click HERE.
Freidel & Associates provides white-glove tax and BOIR compliance solutions to business owners, high-net-worth individuals, and family offices.
For more information, please visit www.freidel.cpa or contact:
Ben Paulding, CPA
(605) 519-6428