By:  Kirsten Fagerland Pezewski, Pezewski Law Offices, S.C.

December 28, 2024.  FinCEN’s website at www.fincen.gov/boi has released another update regarding Texas Top Cop Shop, Inc. v. Garland.  According to FinCEN:  “as of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not currently required to file beneficial ownership information with FinCEN.”

Although a panel of the U.S. Court of Appeals granted a stay of the district court’s preliminary injunction on 12/23/24, and FinCEN posted an alert announcing updated deadlines for reporting companies to file beneficial ownership information, the Court of Appeals has moved quickly and issued an order on 12/26/24 vacating the Court’s 12/23/24 order which granted the stay of the preliminary injunction.

The rapid changes regarding the requirements to report together with FinCEN’s prior announced updated deadline dates illustrate the importance of monitoring the progress of the BOI litigation and ensuring that, if reporting companies are again required to report, they are ready to timely do so.

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 or other action will again 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.