BOI Reporting Updates: What Small Businesses Need to Know

BREAKING UPDATE: January 1, 2025

On 12/31, the U.S. Department of Justice (DOJ) has filed an emergency application with the Supreme Court seeking a stay of a district court's nationwide injunction blocking enforcement of the Corporate Transparency Act (CTA). Decisions on emergency stay applications at this level are often made quickly—within days or weeks—especially when enforcement of laws is halted nationwide. 

This new Supreme Court filing is likely to lead to a next step on BOI enforcement prior to the scheduled February dates for the appeal case. January deadlines could be reinstated should the Supreme Court take action and issue a stay.

We will continue to keep a close watch and update you as this develops.

UPDATE: December 27, 2024

Updating the article below: As of December 27, 2024, the legal status of Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act (CTA) remains in flux due to ongoing legal proceedings.

On Friday, December 27, the appellate court reversed the stay, postponing enforcement again. Companies are not currently required to file while the case is under review, but voluntary submissions are allowed. Some legal experts recommend businesses prepare their BOI details in case the injunction is lifted unexpectedly, as the law remains controversial but well-supported. Read more here at WSJ.com.

UPDATE: December 23, 2024

If you’re a small business owner, you’ve probably been keeping an eye on the ever-changing requirements for Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act (CTA). Well, here’s the latest: on December 23, 2024, the Fifth Circuit Court of Appeals lifted the nationwide injunction that had paused enforcement. This means BOI reporting is back, and filing deadlines are officially in play.

What's Changed?

The Fifth Circuit’s ruling doesn’t just bring the reporting requirements back—it also provides a little breathing room for businesses. Here’s the updated scoop:

• Existing businesses (formed before January 1, 2024): You now have until January 13, 2025, to file (instead of the original January 1 deadline).
• New businesses (formed in 2024): Filing deadlines depend on when your business was created, so check your specific timeline.

Why This Matters

The CTA is all about transparency, aiming to crack down on financial crimes like money laundering and fraud. But with the rules back in effect, the penalties for missing deadlines are steep—think fines of up to $591 per day and even jail time for willful violations.

What Should You Do?

• Don’t Delay: Gather the required information for all your beneficial owners—names, addresses, birthdates, and ID documentation.
• Check for Exemptions: Some businesses, like large operating companies, might be off the hook.
• Get Expert Help: These rules can feel overwhelming, but TMA Accounting is here to make compliance easier.

We know how confusing and frustrating it can be to keep up with changes like these. That’s why we’re staying on top of the latest updates and are ready to help you navigate the BOI filing process. Whether it’s preparing your paperwork or ensuring you meet the deadlines, we’ve got your back.

This continues to be an evolving story. TMA will provide updates as new information becomes available.