Court’s Ruling Blocks Enforcement of FinCEN’s BOI Reporting Requirement

The Corporate Transparency Act introduced a new reporting requirement for Beneficial Ownership Information (BOI), which went into effect Jan. 1, 2024. Enforced by the Financial Crimes Enforcement Network (FinCEN), the requirement states that Reporting Companies must disclose detailed information about their Beneficial Owners and Company Applicants.

On Dec. 3, 2024, the U.S. District Court for the Eastern District of Texas blocked enforcement of BOI reporting by issuing a nationwide injunction on compliance with BOI obligations.    

However, this is a preliminary injunction and the government may or may not appeal.  Resolution of this matter is unknown at this time, and the impact of a successful appeal by the government is also unknown.

Because many aspects of this new reporting requirement are legal in nature and outside the scope of traditional tax and accounting services, consultation with legal counsel is recommended regarding current compliance requirements.

This is a developing story. Additional information will likely be available in the coming days and weeks.