
Updated: January 24, 2025 – On January 23, 2025, the Supreme Court issued a stay of the nationwide injunction in Texas Top Copy Shop, Inc. v. Garland. However there is a separate case, Samantha Smith and Robert Means vs. U.S. Department of Treasury that might not be affected by the ruling.
FinCen has not yet responded to the Supreme Court ruling. They could announce a new BOI reporting deadline at any time. Entity owners need to be prepared to file their BOI reports on short notice
BOI Requirements
BOI reporting requires most U.S. businesses, including corporations, LLCs, and similar entities, to disclose detailed information about their beneficial owners — individuals who own 25% or more of the business or exercise substantial control over its operations.
Businesses must report key information for each beneficial owner, including the full legal name, date of birth, residential address, and a government-issued ID number, such as a passport or driver’s license. These reports are submitted through FinCEN’s secure e-filing system, and businesses are required to update their filings within 30 days of any changes to ownership or control.
Not all entities are subject to BOI reporting. Exemptions include publicly traded companies, nonprofits, and large operating companies that meet specific thresholds for employees and revenue. However, the majority of small and mid-sized businesses will need to comply.
Noncompliance carries consequences. Civil fines can reach up to $591 per day, and criminal penalties include fines of up to $10,000 and imprisonment for up to two years. For businesses managing multiple entities, separate reports must be filed for each to avoid penalties
Next Steps for Reporting Companies
- Prepare for Compliance: Companies will want to begin collecting and organizing the necessary information to meet their BOI reporting obligations.
- Stay Informed: Given the ongoing litigation, businesses will want to remain updated on any changes to the reporting requirements or deadlines. Monitoring announcements from FinCEN will help ensure timely compliance.
- Seek Professional Guidance: Legal and financial professionals can provide valuable insights into the specific obligations of reporting companies and help businesses navigate the nuances of the CTA.
Contact Us
FinCEN’s extended deadlines provide a narrow window for preparation. By staying proactive and informed, reporting companies can adapt to the reinstated BOI reporting requirements and avoid potential penalties. If you have questions about the information outlined above or need assistance with another tax or accounting issue, WhippleWood CPAs can help. For additional information call 303-989-7600 or click here to contact us. We look forward to speaking with you soon.