Is BOI Filing Still Required? LATEST Ruling
Nationwide interest increased efforts to stop the national requirement for filing a BOI report so, is BOI filing still required? This is one of our Blog Planning articles. So, keep reading about another recent court decision deciding a nationwide action. Be careful about outdated attention-grabbing BOIR Videos remaining posted. So, keep reading to see the current answer in our Calendar List of BOI to know the latest on BOI Filing requirements by the Courts & FinCen.
What is the BOI Report?
A BOI Report is an acronym for Beneficial Ownership Information Report. It’s also known as a BOI filing or the BOIR. It’s a requirement to file initially and for certain updates to some companies & LLCs. And the original intent was to make it harder for criminals to launder money and hide financial assets through the creation of “shell companies” as LLCs, for example.
The original intent of the BOI Filing requirement was to make it more difficult for criminals from laundering money and hiding financial assets through the creation of “shell companies” like LLCs.
Here’s the federal government’s BOIR FAQ (Frequently Asked Questions). It’s a great set of a lot of popular questions & answers on this topic.
Latest Calendar List of BOI: Is BOI Filing Still Required, Paused, or Stopped?
There have been some individual cases around the country objecting to this so, many are wondering “Is BOI filing still required?” Seems like the Federal Courts are having internal battles on their own. Sounds like it’s time for the Supreme Court to step in. What do you think? Leave a comment at the end of this post and share your thoughts.
- LATEST >> December 26, 2024: NO – There was a new decision issued from a Court panel, stating it’s voluntary filing again.
- December 23, 2024: YES – Appeals Court ruling changed that and the BOI Report filing is once again required.
- December 4, 2024: NO – Several news sources and podcasts had information conveying that a federal district court judge in Texas issued a nationwide preliminary injunction on BOI filing.
Blocking BOI Reporting Requirements
There are several reasons behind wanting to stop the BOIR requirements. Also, there have been several federal cases on this topic so, keep reading to see more.
Why Stop the CTA and the Requirement to File a BOI Report?
There was a mix of various sources attempting to go through court cases to block the CTA or its requirement of the BOI Report filing. The initial intent of the requirement was portrayed as a goal to reduce criminal elements from money laundering and hiding assets. However, there are some negatives and backlash for various reasons and here are some of them.
1. The BOIR Is Too Much Federal Control
There are some large concerns of federal authorities overstepping their bounds. Some concerns involve excessive federal control and it was felt it should be more at the state level at least, if any at all.
2. The Requirements of Filing a BOI Can Be A Burden To Small Businesses
To file this BOIR requires some understanding of technology if it’s done online. Some might require a scanner or knowledge how to take a quality pic of a document, etc. Also, the gathering of all the needed information isn’t readily available or handled by the person designated to file. So, a lot of internal communication and delays of getting the info is costly. Many might not want the filer to have the business owners’ confidential information. So, all of this is quite a burden on small businesses.
3. Privacy Concerns of Access to Beneficial Ownership Information
It’s always a concern about all the government agencies who would have access to confidential businesses details. While the technical security might be in place, it’s a worry of the human aspects of abusing that private data access. Some of the privacy concerns for business data were discussed in the initial development and deployment of CTA and BOI. From the Financial Services Committee in the House of Representatives, here’s a December, 2023 article on that topic: “McHenry Statement on FinCEN’s Final Rule Regarding Access to Beneficial Ownership Information“.
Court Cases of BOI and the Preliminary CTA Court Injunction
Back in March, 2024 on the FinCen.gov site, a judgment for one case regarding a “National Small Business” entity was reported. The nature of exceeding Constitutional limits was referenced. Shortly after the case judgment in favor of “National Small Business”, a notice of appeal was filed for the federal side.
Source (FinCen.gov/boi): “On March 1, 2024, in the case of National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.), a federal district court in the Northern District of Alabama, Northeastern Division, entered a final declaratory judgment, concluding that the Corporate Transparency Act exceeds the Constitution’s limits on Congress’s power and enjoining the Department of the Treasury and FinCEN from enforcing the Corporate Transparency Act against the plaintiffs.”
On December 4, 2024, the Texas Bankers Association reported: “Federal court in Texas halts beneficial ownership reporting rule“. They also provided a PDF copy of the granted preliminary injunction.
A Texas Federal District Court issued a preliminary injunction against the CTA (involves the BOI filing requirements also). However, other courts are getting involved and differing rulings are taking place. So, always check the top of this post as we update it with the latest.
News on BOI Requirements Rulings
Individual podcasts and online articles have covered the BOI reporting requirements topic in detail, especially with court rulings regarding changes that impact businesses. However, there is now a mix of several federal court rulings. So, to ensure you understand the latest information, always refer to the FinCen BOI section. Regardless, I will always update this article at the very TOP with the latest requirement. I don’t leave old videos or articles on such a serious topic out there. So, share this post with others to keep your friends current too.
Conclusion: Is BOI Filing Still Required?
To be clear, as I’ve mentioned earlier, check the FinCen’s BOI section of their site for the latest announcements. Also check with your legal or tax professional for professional recommendations regarding if you still need to file a BOI Report and when. Also, there is nothing stopping the filing of the BOI online. So, check it out in our article of How To File Your own BOI Report step-by-step. When you do your own, it’s free and quickly filed online.
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