Beneficial Ownership Information potential fines $591/day

[Gregg Bell]

I haven't completely researched it but if you take payment as a corporation this sounds pretty important.

[LilyBLily]

It actually doesn't affect most of us. I've seen it discussed elsewhere. I can't quote the exact sources because these were from private communications within a group:

1. Recent update:

On Dec. 3, a federal court in Texas ruled to halt the implementation of the beneficial ownership information (BOI) filing requirement that was part of the Corporate Transparency Act (CTA).

The court said that the CTA is likely unconstitutional and issued a preliminary injunction barring enforcement of the CTA and its reporting requirements. The ruling states that "reporting companies need not comply with the CTA's January 1, 2025, BOI reporting deadline pending further order of the Court."

Businesses that have not filed their BOI reports prior to this decision may still wish to gather information for their report, in order to be ready to file if the ruling is reversed.

2. My agent sent out an email earlier this year about filing.
If your personal business is incorporated, you were supposed to file a BOI. Even if it
is an LLC. The government wanted to know who is financially benefiting from these businesses to
crack down on fraud. I did file. It wasn't difficult.

But if you haven't done so yet, you can wait and see what the courts decide as already advised here.
 

[Gregg Bell]

It actually doesn't affect most of us. I've seen it discussed elsewhere. I can't quote the exact sources because these were from private communications within a group:

1. Recent update:

On Dec. 3, a federal court in Texas ruled to halt the implementation of the beneficial ownership information (BOI) filing requirement that was part of the Corporate Transparency Act (CTA).

The court said that the CTA is likely unconstitutional and issued a preliminary injunction barring enforcement of the CTA and its reporting requirements. The ruling states that "reporting companies need not comply with the CTA's January 1, 2025, BOI reporting deadline pending further order of the Court."

Businesses that have not filed their BOI reports prior to this decision may still wish to gather information for their report, in order to be ready to file if the ruling is reversed.

2. My agent sent out an email earlier this year about filing.
If your personal business is incorporated, you were supposed to file a BOI. Even if it
is an LLC. The government wanted to know who is financially benefiting from these businesses to
crack down on fraud. I did file. It wasn't difficult.

But if you haven't done so yet, you can wait and see what the courts decide as already advised here.

Thanks, Lily. Amazon was asking me all these questions a couple of weeks ago about who controlled my account etc. I bet you that was part of it. I'm going to ask them just to make sure I'm okay. It seems BOI is more aimed at off-shore account monkey business.

[Hopscotch]

From nfib.com:

Fifth Circuit Reverses Course, Blocks Government Enforcement of Burdensome Beneficial Ownership Reporting For Small Businesses

Press Release
WASHINGTON, D.C. (Dec. 27, 2024) ? The National Federation of Independent Business (NFIB) applauds the new decision by the U.S. Court of Appeals for the Fifth Circuit in NFIB?s lawsuit challenging the Corporate Transparency Act (CTA), Texas Top Cop Shop, Inc., et al. v. Garland, et al. The court?s latest decision reinstates the nationwide injunction, blocking the burdensome beneficial ownership information (BOI) reporting requirements for small businesses while the court fully considers the government?s appeal. It also nullifies a previous Fifth Circuit order that allowed the government to begin enforcing the CTA and BOI reporting requirements again. 

?The court?s reinstatement of the nationwide injunction is a welcome sigh of relief for small businesses,? said Rob Smith, Senior Attorney of NFIB?s Small Business Legal Center. ?Since being told earlier this week that they must urgently submit their BOI reports, our nation?s small businesses have experienced enormous chaos and confusion. Thankfully, the court?s latest decision recognizes that the CTA and BOI reporting requirements pose serious constitutional questions. It also provides Main Streets across the country with a reprieve from this harmful mandate while our lawsuit proceeds.?...

[Gregg Bell]

Well, that's good news!

[Hopscotch]

DOJ asks Supreme Court to block injunction on BOI reporting
Jan. 10 deadline set for plaintiffs to respond

The Justice Department (DOJ) filed an emergency application with the Supreme Court asking it to stay the district court injunction that is preventing the government from enforcing the Corporate Transparency Act and its requirements to report beneficial ownership information (BOI).

In its request, filed Tuesday, the DOJ said the government is likely to succeed in its case. "The Act's reporting requirements are important to the government in preventing, detecting, and prosecuting crimes such as money laundering, tax fraud, and the financing of terrorism,"?the Supreme Court set a deadline of Jan. 10 at 4 p.m. ET for the plaintiffs in the case to respond to the DOJ request?.

The Financial Crimes Enforcement Network (FinCEN), which enforces the CTA, has estimated that over 32 million reporting companies will be required to file BOI reports....

https://www.journalofaccountancy.com/news/2025/jan/doj-asks-supreme-court-to-block-injunction-on-boi-reporting.html

[Gregg Bell]

Thanks for staying on top of it and keeping us informed.

[Hopscotch]

Key Legal Developments on Enforcement of the Corporate Transparency Act
The National Law Review   January 14, 2025

"...ongoing legal challenges have left the status of the BOI [Beneficial Ownership Information] reporting requirement in flux. For the time being, unless the Supreme Court intervenes, the nationwide injunction is likely to remain in place through at least March 25, 2025, the scheduled date for oral arguments before the Fifth Circuit....If the injunction is lifted, or if the Supreme Court grants a stay, reporting companies may be required to submit their beneficial ownership information promptly, subject to any deadline extensions provided by FinCEN....The next few months could prove critical for the future of the CTA and its enforcement."

https://natlawreview.com/article/key-legal-developments-enforcement-corporate-transparency-act

[Hopscotch]

Supreme Court clears way for corporate transparency law to take effect
Washington Post   January 23, 2025

"The Supreme Court cleared the way...for a major corporate transparency law that requires millions of business to make new ownership disclosures in an effort to combat financial crimes.

"The high court lifted a block on the enforcement of the Corporate Transparency Act while a federal Circuit Court of Appeals based in New Orleans weighs the law's constitutionality.  The Supreme Court did not give a reason it was lifting the injunction...."

[Gregg Bell]

Uh oh. Thanks for the update.

[Post-Crisis D]

Warren Davidson re-introduced legislation to repeal the CTA.

https://x.com/Rep_Davidson/status/1879561451674759549

[Hopscotch]

Small Businesses Ask Court to Reject Corporate Transparency Act in Amicus Brief
The case challenges the beneficial ownership reporting requirements for small businesses
NFIB   January 30, 2025

The National Federation of Independent Business argues for Congress?s passage of "the Repealing Big Brother Overreach Act, legislation that would repeal the CTA and permanently relieve small businesses of the beneficial ownership information reporting requirements."

https://www.nfib.com/news-article/small-businesses-ask-court-to-reject-corporate-transparency-act-in-amicus-brief/

[Hopscotch]

FinCEN hints at BOI reporting changes in court filing
Journal of Accountancy   February 6, 2025

"The Financial Crimes Enforcement Network (FinCEN) will consider changes to the beneficial ownership information (BOI) reporting requirements if a court grants the government's request for a stay of a nationwide injunction in a Texas case...if the stay is granted, FinCEN will extend BOI filing deadlines for 30 days..."During that period, FinCEN will assess whether it is appropriate to modify the [Corporate Transparency Act's (CTA's)] reporting requirements to alleviate the burden on low-risk entities while prioritizing enforcement to address the most significant risks to U.S. national security...." said the request from the Department of Justice...In the meantime, reporting companies are not required to file BOI reports...FinCEN estimates that the CTA,...which includes the BOI reporting requirements, covers 32 million small businesses.  The Texas Public Policy Foundation, which represents the plaintiffs in the Smith case, will oppose the government?s request for a stay..."

https://www.journalofaccountancy.com/news/2025/feb/boi-smith-case-fincen-motion-to-stay.html

[LilyBLily]

Thanks for keeping us up on this insane plan. Very Big Brother and a huge task to oversee--by what government employees? They're all being fired, right? (It's a joke. I'm not being political Timothy.)

[She-la-te-da]

There's no one to enforce it now. So, maybe it's dead. A moot point. At any rate, I'm not a company, and such laws are a big reason I'm not rushing to form an LLC, plus it's just a pain and another expense.

[Hopscotch]

BOI injunction lifted; FinCEN promises 30-day filing delay
Journal of Accountancy   February 18, 2025

"A federal district court lifted the last remaining nationwide injunction stopping beneficial ownership information (BOI) filing requirements, but the federal enforcement agency has promised at least a 30-day delay before new filings will be required....

"The Financial Crimes Enforcement Network (FinCEN), which enforces BOI requirements under the Corporate Transparency Act..., said earlier in an alert on its site: 'FinCEN intends to extend the reporting deadline for all reporting companies 30 days from the date the stay is granted. Further, in keeping with Treasury's commitment to reducing regulatory burden on businesses, FinCEN, during that 30-day period, will assess its options to modify further deadlines or reporting requirements for lower-risk entities, including many U.S. small businesses, while prioritizing reporting for those entities that pose the most significant national security risks.'

"At the time of publication, FinCEN had not updated its site with specific dates."

https://www.journalofaccountancy.com/news/2025/feb/boi-injunction-lifted-fincen-promises-30-day-filing-delay.html

[Hopscotch]

Updated Guidance on the Corporate Transparency Act and Beneficial Ownership Information Reporting Requirements
The National Law Review   February 24, 2025

The Financial Crimes Enforcement Network?s (FinCEN) "has updated guidance resuming its enforcement of BOI reporting requirements. Consequently, the vast majority of non-exempt reporting companies must file initial, amended, and/or corrected BOI reports by March 21, 2025" IAW FinCEN Guidance.  "As with past developments, the CTA?s future remains uncertain, and possible Congressional and/or further court actions could delay, change, or eliminate beneficial ownership reporting requirements."

For further explanation:  https://natlawreview.com/article/updated-guidance-corporate-transparency-act-and-beneficial-ownership-information

[Gregg Bell]

Updated Guidance on the Corporate Transparency Act and Beneficial Ownership Information Reporting Requirements
The National Law Review   February 24, 2025

The Financial Crimes Enforcement Network?s (FinCEN) "has updated guidance resuming its enforcement of BOI reporting requirements. Consequently, the vast majority of non-exempt reporting companies must file initial, amended, and/or corrected BOI reports by March 21, 2025" IAW FinCEN Guidance.  "As with past developments, the CTA?s future remains uncertain, and possible Congressional and/or further court actions could delay, change, or eliminate beneficial ownership reporting requirements."

For further explanation:  https://natlawreview.com/article/updated-guidance-corporate-transparency-act-and-beneficial-ownership-information

Thanks for sticking with this issue. What a ping pong situation.

[Hopscotch]

FinCEN Not Issuing Fines or Penalties in Connection with Beneficial Ownership Information
February 27, 2025

"...FinCEN announced that it will not issue any fines or penalties or take any other enforcement actions against any companies based on any failure to file or update beneficial ownership information (BOI) reports...until a forthcoming interim final rule becomes effective and the new relevant due dates in the interim final rule have passed....No later than March 21, 2025, FinCEN intends to issue an interim final rule that extends BOI reporting deadlines, recognizing the need to provide new guidance and clarity as quickly as possible...FinCEN also intends to solicit public comment on potential revisions to existing BOI reporting requirements...."

https://www.fincen.gov/news/news-releases/fincen-not-issuing-fines-or-penalties-connection-beneficial-ownership

https://www.allbusiness.com/who-needs-to-file-a-boi-report

[Hopscotch]

The ping pong ball continues to bounce:

Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies
March 2, 2025

"The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only...."

The cover article notes that "it is possible there could be further developments."

https://www.choate.com/insights/corporate-transparency-act-suspended-for-us-citizens-and-companies.html

[Gregg Bell]

The ping pong ball continues to bounce:

^ Seems to be the new normal in a lot of things lately.