Dec. 26th BOI Update: Court Blocks Reporting Requirement…Again

In another twist for small-business owners, a federal court has once again halted the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting requirement.
On Thursday, December 26, a Fifth Circuit Court of Appeals panel vacated a prior decision made just three days earlier that had lifted a nationwide injunction on the CTA. This latest ruling effectively suspends the BOI reporting requirement, giving affected businesses temporary relief from compliance.
If all the recent news around the CTA and BOI sounds confusing, it’s because it is. If you are a small-business owner affected by the Corporate Transparency Act, here is the only thing you need to know: As of Dec. 26, 2024, you are not required to submit a beneficial ownership information report.
It has been a chaotic year for the Corporate Transparency Act (CTA), which requires “reporting companies” to submit beneficial ownership information to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
However, implementation has been anything but smooth. Compliance rates have struggled to hit 10%, as many business owners remain unaware of the law or confused about its requirements. Adding to the uncertainty are multiple lawsuits challenging the law’s constitutionality.
Recap of the BOI Legal Tug-of-War
January 1, 2024: The Corporate Transparency Act went into effect. Businesses formed before January 1, 2024, were required to file BOI reports by January 1, 2025. Newly formed businesses were given 90 days to file, with that window shrinking to 30 days starting in 2025.
March 2024: An Alabama court granted an injunction, but it applied only to a specific group including the National Small Business Association and its members.
December 3, 2024: A Texas federal court issued a nationwide injunction, temporarily blocking the law for all affected businesses just weeks before the original January 1, 2025, deadline.
December 23, 2024: A Fifth Circuit motions panel granted the government’s request to stay the injunction, reinstating the BOI reporting requirement. FinCEN responded by extending the filing deadline by two weeks.
December 26, 2024: A different Fifth Circuit panel reversed the December 23 decision, reinstating the nationwide injunction and halting the BOI reporting requirement once again.
What Small Business Owners Need to Know
As of now, small-business owners are not required to submit BOI reports. However, this could change quickly. The next key date is March 25, 2025, when the Fifth Circuit will hear oral arguments regarding the law’s constitutionality.
In the meantime, FinCEN is encouraging businesses to voluntarily file BOI reports. If you’re unsure whether to comply, consult an attorney or visit fincen.gov/boi for more information.
Resource Links to Learn More:
- Find guidance materials and additional information: https://www.fincen.gov/boi
- Subscribe to immediate email updates about Beneficial Ownership Information: https://service.govdelivery.com/accounts/USFINCEN/subscriber/new
- Read more about FinCEN’s definition of “reporting company” and compliance requirements: https://www.fincen.gov/boi/small-entity-compliance-guide