Revised Holiday Schedule

HOLIDAY HOUR EXTENSION

Our office has been preoccupied with BOI matters during the holiday so with that being the case, our office will be closed through 17 January, 2025 or earlier dependent upon BOI case movement.

The roller coaster continues but we are not riding it.

As stated in previous updates, we believe ultimately that the long arm of finCEN will prevail, even if it goes to the Supreme Court. Like it or not, "State" created entities are subservient to the state and federal government including statutory irrevocable trusts. Private Irrevocable Trusts are not required to file the BOI reports under the Corporate Transparency Act (CTA). If an irrevocable trust owns 25% or more of a reporting company or exercises significant control of it, individuals associated with the trust (e.g. trustees, beneficiaries, or settlors) may need to report BOI.

However, most trusts are excluded from direct reporting as they are not typically considered "reporting companies" under the CTA.

THIS IS NOT INTENDED TO BE LEGAL ADVICE. PLEASE CONSULT YOUR ACCOUNTING PROFESSIONAL.

UPDATE

A federal appeals court on Thursday reinstated a nationwide injunction halting enforcement of beneficial ownership information (BOI) reporting requirements, reversing an order the same court issued earlier this week.

In its latest order, the Fifth Circuit Court of Appeals said it was reinstating a lower court's injunction "in order to preserve the constitutional status quo while the merits panel considers the parties' weighty substantive arguments," referring to the panel of judges who will decide the appeal.

The AICPA has been urging the government to postpone the original Jan. 1, 2025, BOI reporting deadline. The requirements are imposed by the Corporate Transparency Act (CTA) and enforced by the Financial Crimes Enforcement Network (FinCEN).

In a statement Friday, the AICPA said it "is seeking guidance from FinCEN and maintains its advice for those assisting clients with BOI filings to gather information required from clients and be prepared to file in case the injunction is lifted again."

Later on Friday, FinCEN issued an updated alert on its BOI information page, saying that companies can voluntarily submit BOI reports.

"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," the FinCEN alert said. "However, reporting companies may continue to voluntarily submit beneficial ownership information reports."

On Dec. 3, a federal district court in Texas issued the injunction in Texas Top Cop Shop, Inc. v. Garland, No. 4:24-CV-478 (E.D. Texas 12/3/24). Under the injunction, the CTA and the BOI reporting rule could not be enforced, and reporting companies would need not comply with the Jan. 1, 2025, BOI reporting deadline pending a further order of the court.

Appeals court reinstates injunction that halts BOI enforcement