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BOI Enforcement Resumes; New Filing Deadline Set

We wish to inform you of a significant development regarding the Corporate Transparency Act (CTA), which mandates that certain business entities disclose their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN).

Background

The CTA, enacted in 2021, aims to combat illicit financial activities by requiring companies to report their true ownership, thereby preventing the misuse of anonymous shell companies.

Recent Developments

In January 2025, enforcement of BOI was temporarily halted due to a nationwide injunction issued by a federal judge in Texas. However, as of February 18, 2025, this injunction has been lifted, reinstating BOI’s reporting requirements. In response, FinCEN has extended the filing deadline for most companies to March 21, 2025, acknowledging that businesses may need additional time to comply.

Who Is Affected?

The BOI’s reporting requirements apply to a wide range of entities, including corporations, limited liability companies, and other similar entities registered in the United States. Certain exemptions exist, such as for larger companies with more than 20 employees and over $5 million in annual revenue.

Action Steps

Assess Applicability: Determine whether your entity falls under the BOI’s reporting requirements.
Prepare Information: Gather necessary details about your beneficial owners, including full legal names, […]

By Linkenheimer LLP|2025-02-19T23:02:21+00:00February 19th, 2025|filing deadline, New Tax Laws|0 Comments

BOI Reporting Update: What You Need to Know

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 […]

By Linkenheimer LLP|2025-01-28T15:05:07+00:00January 28th, 2025|deadline, filing deadline, New Tax Laws|0 Comments

Appeals Court Reinstates Injunction Halting BOI Enforcement

On December 26, 2024, the Fifth Circuit Court of Appeals reinstated a nationwide injunction against the enforcement of the Corporate Transparency Act (CTA), temporarily pausing the requirement for companies to disclose their Beneficial Ownership Information (BOI) to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).

This decision reverses an earlier ruling by the same court, which had lifted the injunction and allowed the CTA’s enforcement to proceed. The reinstated injunction means that the January 13, 2025, deadline for companies to submit their BOI reports is currently on hold while the court decides the case.

Key Points to Know:

What is the Corporate Transparency Act?
Enacted in 2021, the CTA requires corporations and limited liability companies to report information about their beneficial owners to FinCEN to combat financial crimes like money laundering.

Why was the injunction reinstated?
The court seeks to maintain the status quo while considering constitutional arguments raised by opponents, who claim the law infringes on privacy and imposes unnecessary burdens on small businesses.

What does this mean for businesses?

- January 13, 2025 Deadline on Hold: Companies are not required to file BOI reports until further […]

By Linkenheimer LLP|2024-12-27T18:28:06+00:00December 27th, 2024|filing deadline, New Tax Laws, News|0 Comments

California Conforms to IRS: More Time to File State Taxes for Californians Impacted by Winter Storms

SACRAMENTO – In addition to tax relief measures that Governor Gavin Newsom announced in January, California is also extending the state tax filing and payment due dates to October 16, 2023 for Californians impacted by the winter storms in December and January. This aligns California with the Biden Administration, which announced that the IRS extended various due dates until October 16, as well.

“As communities across the state continue recovering from the damage caused by the winter storms, California is working swiftly to help recovering Californians get back on their feet,” said Governor Newsom. “The state is aligning with the Biden Administration and extending the tax filing deadline in addition to the tax relief announced earlier this year.”

Last month, Governor Newsom announced tax relief for those impacted by winter storms, giving people the ability to claim a deduction for disaster loss and extending certain filing deadlines.

The following counties are eligible for this extended tax relief, per the IRS announcements here and here:

Residents and businesses in Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Inyo, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Nevada, Orange, […]

By Linkenheimer LLP|2023-03-07T19:48:04+00:00March 3rd, 2023|CA tax, california, disaster, filing deadline, ftb, irs, New Tax Laws|0 Comments

California Tax Updates Regarding Wildfire Victims

Update 1:

Wildfire victims in parts of California now have until Jan. 3, 2022, to file certain tax returns and make tax payments. In August 2021, CA granted extensions to individuals and businesses affected by wildfires. They were originally given until Nov. 15, 2021 to complete these tasks. The IRS has now extended that deadline to Jan. 3, 2022. This deadline also applies to the quarterly payroll and tax returns normally due on Aug. 2, 2021, and Nov. 1, 2021. In addition, penalties on payroll tax deposits due on or after July 17, 2021, but before July 29, 2021 will be abated as long as the deposits were made by July 29, 2021.

Update 2:

New rates for California’s cannabis cultivation tax have been posted for 2022.The CA Dept. of Tax and Fee Administration (CDTFA) lists the following: cannabis flower, $10.08 per dry-weight ounce; cannabis leaves, $3.00 per dry-weight ounce; and fresh cannabis plants, $1.41 per ounce. Rates for cannabis cultivation tax are […]

By Linkenheimer LLP|2021-12-02T20:34:10+00:00December 2nd, 2021|filing deadline, fire, Fire Relief Info, tax deadlines|0 Comments