Important Update on BOI Reporting Requirements
There have been ongoing updates regarding the enforcement of Beneficial Ownership Information (BOI) reporting requirements. In the latest development, the Fifth Circuit Court of Appeals reinstated a lower court's injunction, which temporarily suspends the BOI filing requirement. The court cited the need to preserve the constitutional status quo while a panel of judges reviews the case's substantive arguments.
The reporting requirements are imposed by the Corporate Transparency Act (CTA) and enforced by the Financial Crimes Enforcement Network (FinCEN). On Friday, FinCEN issued an updated alert, stating that companies are not currently required to submit BOI reports, and they will not face penalties for non-compliance while the court order is in effect. However, companies can still voluntarily submit their BOI reports.
Beware of Third-Party Scams
Be cautious of unsolicited communications from third-party companies claiming to assist with BOI filings. Many of these solicitations are spam attempts to collect your private information. Always ensure you are working directly with FinCEN to protect your sensitive data.
How to File
You can file your BOI report directly on the FinCEN website at:
boiefiling.fincen.gov
No fee is required for submission.
The questions are straightforward, requiring basic information for each entity you own.
You do not need to submit banking, payroll, or other sensitive data.
A photo ID (state-issued driver’s license or passport) is needed for each individual, as part of the identification process.
Best Practices for Compliance
Even though the requirement is temporarily suspended, it’s a good idea to prepare for BOI filing requirements now. This includes gathering the necessary information for all entities you own that existed before January 1, 2024, so you are ready to file when the requirement is reinstated. For businesses in Florida, there is a July 1, 2025 extension for entities impacted by Hurricane Milton.
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