As of now, businesses are not required to file Beneficial Ownership Information (BOI) reports, following recent legal and legislative developments. Here’s what you need to know:

Current Status of BOI Reporting

According to an alert posted on FinCEN’s BOI reporting webpage, BOI reporting remains voluntary despite the U.S. Supreme Court’s recent decision to stay the preliminary injunction issued in Texas Top Cop Shop Inc. v. McHenry (U.S. Supreme Court, Case No. 24A653, January 23, 2025). This decision temporarily lifted one of the blocks against BOI reporting requirements.

However, another nationwide injunction issued in Smith v. U.S. Department of Treasury (U.S. Dist. Court, Eastern Dist. of Texas, Case No. 6:24-CV-336, January 7, 2025) still prevents the enforcement of BOI reporting rules. Notably, the Department of Justice has not yet appealed the decision in Smith, and it remains unclear if the new administration will pursue an appeal.

Legislative Efforts to Repeal BOI Requirements

In addition to the ongoing legal battles, two bills (H.R. 425 and S. 100) have been introduced in Congress aiming to repeal the Corporate Transparency Act, the legislation that created the BOI reporting mandate. These bills could significantly impact the future of BOI reporting if passed.

What This Means for Your Business

At this time, businesses are not required to submit BOI reports and cannot be penalized for failing to file. However, the legal and legislative landscape continues to evolve, and changes may occur depending on the outcomes of these cases and legislative efforts.

Staying Informed

We understand that the uncertainty surrounding BOI reporting may raise questions for your business. Rest assured, we are closely monitoring developments and will keep you informed of any updates as they happen.

If you have any questions or need assistance understanding how these changes might impact your business, please don’t hesitate to reach out to our team. We’re here to help.