FinCEN Signals Willingness to Reassess BOI Reporting Obligations

FinCEN's beneficial ownership information (BOI) reporting obligations were set to become effective as of January 1, 2025, but have faced a series of court challenges.  Currently, a nationwide injunction from a Texas court remains in place (the case is Samantha Smith and Robert Means v. U.S. Department of the Treasury, No. 6:24-CV-336 (E.D. Texas 1/7/2025)). The government has now requested that the court lift the injunction while the case remains under appeal.  If the court agrees to grant the government's request for a stay of the injunction, FinCEN has stated that it will extend BOI reporting obligations for 30 days.  During that period of time, FinCEN also stated that it will evaluate the reporting obligations under the Corporate Transparency Act (CTA) and consider modifying the requirements for low-risk entities to prioritize enforcement efforts on high risk entities.  In the meantime, note that BOI reporting obligations remain suspended until the court makes a decision.  Relatedly, slthough BOI reporting is currently on hold, FinCEN announced that penalties for reporting violations increased to $606 a day from $591, effective January 17. The original amount was $500.  For more information on the BOI reporting regime, visit Tax Facts Online. Read More: Link to Q8978.01.  Note: Q is updated.