Small businesses including LLCs, corporations, partnerships, or any entity filed through the Secretary of State have received a flurry of news surrounding the finalizing of FinCEN reporting requirements for 2025. While FinCEN Beneficiary Ownership Information (BOI) Reports can still be submitted voluntarily as previously communicated, we are still waiting to hear final judgement regarding the obligation to file.
On December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay on the district court’s preliminary injunction, effectively enforcing the Corporate Transparency Act (CTA) and the associated FinCEN BOI reporting requirements. The Treasury Department informed the public of this ruling and extended the FinCEN BOI reporting deadline to January 13, 2025 (just three weeks after the order). However, on December 26, 2024, another panel of the Fifth Circuit overturned this decision and reinstated a national stay of the preliminary injunction. On December 31, 2024, the Department of Justice, on behalf of the Treasury, requested a stay of the injunction while the case is under appeal to the Supreme Court of the United States.
If you have already submitted a FinCEN BOI Report, no further action is required. If you haven’t filed yet, you may still choose to submit the report voluntarily, but you are not obligated to do so at this time. Due to the uncertainty surrounding the CTA and its enforcement, reporting companies should be prepared to file on short notice.
If you have any questions, please contact your JNBA Advisory Team.
JNBA is neither an agent of FinCEN (Financial Crimes Enforcement Network) nor an agent of the Department of Treasury. JNBA is not an attorney and no portion of the above should be construed as legal advice. All legal issues should be addressed with the legal professional of your choosing. JNBA is not an accountant and no portion of the above should be construed as accounting advice. All accounting issues should be addressed with an accounting professional of your choosing.
Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, LLC.
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