The bill passed Friday night to avert a federal government shutdown didn’t include a one-year extension to the deadline for companies to file beneficial ownership information (BOI) reports. The extension had been included in an initial version of the bill.
Meanwhile, a nationwide court injunction preventing enforcement of the BOI reporting requirement remains in effect pending appeal.
The injunction was issued in Texas Top Cop Shop, Inc. v. Garland, No. 4:24-CV-478 (E.D. Texas 12/3/24). Under the injunction, the Corporate Transparency Act (CTA) and the BOI reporting rule cannot be enforced, and reporting companies need not comply with the Jan. 1, 2025, BOI reporting deadline pending a further order of the court.
The DOJ has asked the Fifth Circuit Court of Appeals to rule on its request for a stay by Dec. 27 “to ensure that regulated entities can be made aware of their obligation to comply before January 1, 2025.”
The AICPA and state CPA societies had written numerous letters to Congress and the Financial Crimes Enforcement Network (FinCEN), which enforces the CTA, urging a delay in the reporting deadline.
The AICPA is regularly updating its BOI reporting resource center.
Under the CTA, P.L. 116-283, which Congress passed in 2021 as an anti-money-laundering initiative, reporting companies must disclose the identity and information about beneficial owners of the entities. For new entities incorporated after Jan. 1, 2024, reporting companies must also disclose the identity of “applicants” — defined as any individual who files an application to form a corporation, limited liability company, or other similar entity.