Dear Esteemed client,

 

As you may be aware, the U.S. Fifth Circuit Court of Appeals is currently reviewing a decision by a Texas court to block the enforcement of the beneficial ownership information (BOI) reporting requirement (Texas Top Cop Shop, Inc. et al. v. Garland, December 26, 2024, U.S. Ct. of Appeals, Fifth Circuit, Case No. 24-40792). The review is being expedited, but in the meantime, the requirement to file a BOI report with FinCEN is on hold.

 

As of today, businesses cannot be penalized for failing to file BOI reports with FinCEN. However, as recent developments have shown, this situation could change at any time.

 

Previously, we informed you that all new businesses must file these reports by January 1, 2025 (the original deadline) to avoid penalties of up to $591 per day. Due to the Texas district court's ruling, this deadline is no longer in effect—for now.

While businesses are not required to file BOI reports during the ongoing court order, you can still choose to file your report voluntarily as the legal situation unfolds. There remains a possibility that the reporting requirement may be reinstated on short notice. Therefore, we recommend continuing to gather the necessary information in preparation for filing if the requirement is reinstated.

 

 

Here are your options:

 

1.- If you choose not to file the report, no penalties will be applied at this time.

 

2.- If you have already filed, there is no further action needed on your part. We do not yet know if FinCEN will discard the

information already submitted.

 

3.- If you haven’t filed but have the required information and wish to do so, you are welcome to proceed. Please let us know if you need assistance.

 

Feel free to reach out if you have any questions about this matter.

Sincerely,

Ausejo Taxes & Bookkeeping

 

 

The Financial Crimes Enforcement Network (FinCEN) established a beneficial ownership information requirement (BOI) under the Corporate Transparency Act (CTA) whereby most U.S entities must report information on their beneficial owners to FinCEN starting on January 1, 2024.

 

PLEASE BE AWARE: 

As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. However, this civil penalty amount is adjusted annually for inflation. As of the time of publication of this FAQ, this amount is $591.

A person who willfully violates the BOI reporting requirements may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.

If applicable to your business, earlier this year, you should have received a notification from FINCEN (Financial Crimes Enforcement Network) regarding the new Beneficial Ownership Information Reporting (BOIR) filing requirement. This is a friendly reminder to ensure that your filing is submitted before January 1, 2025. You can complete the filing directly at the following link:

- https://boiefiling.fincen.gov/fileboir.

Here is a separate link for more information:

- https://boiefiling.fincen.gov/resources/BOIR_E-File_Online_Step-by-Step_Instructions.pdf