This post is part of a series for tax clients meant to keep you informed about anticipated changes on Capitol Hill so you can prepare properly. Please contact this office if you have any queries.
Breaking News
On Thursday, January 23, 2025, the Supreme Court ordered a stay of a countrywide injunction that had earlier blocked the implementation of beneficial ownership information (BOI) reporting requirements for enterprises.
The BOI regulations are part of the Corporate Transparency Act (CTA), P.L. 116-283. FinCEN estimates that 32 million small firms will be required to submit BOI reports.
FinCEN published an update on Friday, January 24, 2025, stating that the Supreme Court approved the government's move to stay a nationwide injunction imposed by a federal court in Texas (Texas Top Cop Shop, Inc. v. McHenry, previously Texas Top Cop Shop v. Garland).Despite the Supreme Court's decision in Texas Top Cop Shop, reporting corporations are still not obliged to submit beneficial ownership information with FinCEN because to a second national ruling granted by a different federal court in Texas (Smith v. U.S. Department of the Treasury). Reporting firms are not accountable if they fail to submit this information while the Smith order is in effect. However, reporting organizations may continue to voluntarily provide beneficial ownership information reports."
