FinCEN complying with BOI Filing Temporary Injunction

FinCEN announced that it would comply with the order issued by the District Court in Texas Top Cop Shop,. “so long as it is in effect… .” Even though the injunction was issued by a judge in the Eastern District of Texas, it is nationwide and applies to all entities. FinCEN further stated:

“In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.” https://www.fincen.gov/boi

The Biden Administration Department of Justice filed a Notice of Appeal on December 5, 2024. The DOJ also announced that “voluntary compliance” with the CTA Beneficial Ownership Information Reporting requirements could be made. It is also very possible that the new Congress and Trump administration may either withdraw this appeal or pass legislation to repeal this very intrusive law.

It is doubtful the Court of Appeals will address this injunction prior to the January 1, 2025, initial required filing date. This injunction also applies to newly established businesses. Frankly, it would not be surprising if they delayed any decision until after January 20, 2025, when President Trump is sworn in.

Nevertheless, gathering all the information for the required reporting is important. If the injunction is reversed and Congress does not act, FinCEN will likely rapidly impose almost immediate filing deadline.

RJC