By Kirsten Pezewski, Attorney, Pezewski Law Offices, S.C.

FOR NOW, FEDERAL COURT DECISION STOPS JANUARY 1, 2025 FILING REQUIREMENT FOR OWNERS OF CORPORATIONS AND LLCS

Good news for owners of corporations and LLCs that have not yet filed their beneficial ownership information with the federal government. A December 3, 2024 decision by a Texas district court has issued an injunction staying the requirement to report beneficial ownership information. This injunction is currently effective nationwide.

FinCEN has issued an alert stating that reporting companies are not currently required to file their beneficial ownership information and will not be subject to liability if they fail to do so while the injunction is in effect. https://fincen.gov/boi

However, this will likely not be the end of the story. The Department of Justice has already filed a Notice of Appeal on December 5, 2024.

Because of the harsh penalties for failing to comply with the CTA and reporting requirements (criminal penalties of up to two years of imprisonment and a fine of up to $10,000 and/or civil penalties of $591 per day increased annually by inflation) it’s very important to continue to monitor the status of the Corporate Transparency Act and its reporting requirements, to see if the appeal will affect the injunction and what happens to the reporting requirements and deadline dates.

Please be sure that you are working with your accountant and/or attorney to monitor the status of the BOI reporting requirements for your own organizations, and that you understand the requirements and penalties for failure to comply with the CTA.

NOTICE THAT THIS IS NOT LEGAL ADVICE: The information in this blog post is provided for general informational purposes only. The information contained in this post should not be construed as legal advice from Rental Property Association of WI, Inc. or its individual author. Please seek appropriate legal or professional advice on the particular facts and circumstances that you may have at issue from a lawyer licensed to practice law in your state or jurisdiction if you wish to obtain legal advice about any matter.