Background
Under the Corporate Transparency Act (CTA), which went into effect on January 1, 2024, over 32 million U.S. small businesses are required to file BOI reports with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). For most covered businesses, the filing deadline is January 13, 2025. Those who fail to file by this deadline — or fail to update this information if needed — could face up to two years imprisonment and fines up to $10,000, in addition to civil penalties of up to $591 per day. However, because of the court’s current injunction blocking enforcement of this law, businesses are not required to comply with the CTA’s BOI reporting requirements.
Is BOI reporting dead?
No. The Department of Justice can appeal the decision, and this case could go all the way to the Supreme Court. Additionally, the back-and-forth court decisions underscore the need for Congress to repeal the CTA and provide long-term certainty for small businesses.
What should businesses do next?
The court reinstated a nationwide injunction, which means that the rule is on indefinite hold and the government can’t enforce it against any individual or business in any state. So, for now, if you haven’t filed the form, you can hold off — but don’t ignore it entirely. There’s a chance that the courts could again lift the hold. As before, it’s a good idea to prepare beneficial ownership information just in case. You can review NFIB’s BOI resources, email your members of Congress, and view NFIB’s webinar and podcasts on this issue, at NFIB.com/ProtectPrivacy. Email the NFIB Small Business Legal Center at [email protected] with additional questions.
If you have already filed with FinCEN there is nothing you need to do.