Filing of BOIR reporting is on hold for the present moment thanks to a recent decision in United State District Court, Eastern District of Texas, in Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.),
FinCEN just issued a notice on their website confirming this. Beneficial Ownership Information Reporting | FinCEN.gov Stating: “In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
The U.S. Department of Justice or course immediately appealed the decision. Given that actions are coming through the court system as well as through Congress, there is a ray of hope that perhaps this country will come to its senses regarding this gross overreach of government power (IMHO)
On the congressional side, there are two actions at various stages of progress seeking to fully repeal the CTA. Senate Bill S.4297 introduced May 9, 2024 by Sen. Tuberville (R-AL) https://bit.ly/4ipHgX6 and House Resolution H.R.8147 sponsored by Rep. Davidson (R-OH-8) on April, 29, 2024. https://bit.ly/4g3mg6O
Several lawsuits were filed this year challenging the authority of the CTA and seeking repeal, but none had teeth to gain any ground. To date, and prior to the recent Texas ruling, FinCEN did not budge and merely stated the rulings applied only to the Plaintiffs and the specific members who were represented. However, the recent Texas case mentioned above actually had the teeth to at least pause everything for a time.
The question remains whether CTA will actually be overturned or filing merely delayed.
In the meantime, BOIR filing is voluntary.
What should you do? That’s up to you, as it’s a legal question, not a tax question. File or wait and see what happens…Those are the two options right now..
The best thing you can do is educate yourself on this matter and stay apprised of current developments.
Blessings!
Jay Lode, CPA
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