Policy & Mop: Business Owners Information (via FinCEN with legal updates)

What: Business Owners Information Report (BOIR)

Why: Current Nationwide Injunction by the 5th Circuit Court of Appeals

Latest Update: 12/26/2024 - BOIR Reporting is On HOLD

The BOI is the latest government version of ping-pong. It's on. It's off. It's on, only to be off again. While the Corporate Transparency Act and the Business Owners Information (BOI) has been around for well over a year, we first reported on it back in November because the final deadline was approaching 12/31/2024. 

As a recap, the BOI was a law with oversight from FinCEN to limit the corporate shell game. Any business (sole-proprietors aside) AND any anyone with control or ownership of these business have to register through a BOI report (BOIR). It's free and it's easy to file through FinCEN (link here). The purpose of the law through the Corporate Transparency Act was to curb terrorism funding, illegal companies, or creating shell companies to curb illegal activities. 

Each business formed prior to 2024 had to file a report by December 31, 2024. Any business (again, non-sole-props excluded) formed in 2024 had 60 days to file. Any business formed after 2024 had 30 days to file. But all of this is now on hold.

The History:

January 1, 2021 - The Corporate Transparency Act was enacted as part of the Anti-Money Laundering Act

January 1, 2024 - The reporting requirements went into effect on 1/1/24 by way of the BOIR.

December 3, 2024 - The US District Court (Eastern District) in Texas via Texas Top Cop Shop v Garland granted an injunction against the federal government on the basis of legislative overreach. 

December 23, 2024 - The Fifth Circuit Court of Appeals reversed the District Court's injunction and reporting was required once again. 

December 26, 2024 - The Fifth Circuit REVERSED their decision in favor of further review and placed a nationwide injunction. 

December 31, 2024 - An appeal was filed with the US Supreme Court to lift the injunction while the case is under review within the 5th Circuit. Justice Alito requested Texas Cop. Shop, et al's arguments by January 10, 2025 in response to the government's application, though SCOTUS doesn't have to respond to the government's application. The appeal's arguments within the 5th Circuit occurs March 25, 2025. 

My Synopsis:

Just file the thing. Filing is voluntary while the injunction is in place, but once it's lifted, then it'll be required. I think this will be lifted. But for sure, barring any SCOTUS activity, the appeal will go on as planned in March, so nothing will be decided on by 3/25/25. 

Legal Mumbo Jumbo:

I'm not a lawyer and never played one on TV. Seek legal advice elsewhere. This blog series covers laws coast to coast and with the thousands of laws impacting us, our crack staff will never keep up with them. To make matters worse, the crack staff are stuck in the cracks. If you see an inaccuracy, let us know. See the Introductory post to Policy & Mop.