Ongoing Saga Over FinCEN BOI Reporting Regime

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide injunction to prevent enforcement of the BOI reporting rules. The case was Texas Top Cop Shop, Inc., et al. v. Garland, et al. The court enjoined enforcement of the CTA, stating that the CTA itself is likely unconstitutional. On December 11, 2024, the DOJ took additional steps to put pressure on the Texas district court. It filed a motion to stay enforcement of the injunction itself pending their appeal with the Texas district court. The DOJ also stated that it intended to seek relief directly from the Fifth Circuit if the district court had not granted that relief by December 13, 2024. On December 13, the DOJ did file that motion with the Fifth Circuit. The Fifth Circuit quickly responded to the emergency motion and set a December 17 due date for the plaintiffs to respond to the motion. The government has until December 19 at noon to file a reply to that response. Because of this fast pace, it’s possible that the courts will issue a final ruling before the year-end compliance deadline. If a stay is issued while the appeal is pending, the January 1 deadline could once again become enforceable. In the meantime, companies can choose to report voluntarily. For more information on the BOI reporting rules, visit Tax Facts Online. Read More: Link to Q8978.01.