December has been an eventful time for FinCEN’s Beneficial Ownership Information Report. As discussed in a prior post (link), this report is a new requirement in 2023 that applies to virtually every business in the United States. If your entity is created by filing something with a state secretary of state, the entity likely needs to comply with this requirement.
Or at least it did. Earlier this month, a US District Court issued an opinion (link) that stayed enforcement of the requirement. This means that compliance is not required until the court order is overturned on appeal. Or, if the order is affirmed on appeal, then the BOI report may never be required. FinCEN has announced that they will still accept reports if companies want to file but it is no longer required.
Relatedly, Congress has included in the continuing resolution to keep the government open a provision that extends the requirement deadline from January 1, 2025 to January 1, 2026. This will only be relevant if the district court opinion is overturned sometime in 2025, which is not a certainty. Regardless, it goes to show that there is awareness in Congress that many companies need more time to come into compliance.
If you have any questions or concerns, please reach out. Mid-Atlantic Law & Tax is happy to help you navigate this and any of your other business-law requirements.
