BOI UPDATE 12/30/24

Again, the Courts have reversed their position on a stay of the requirement to file beneficial ownership information reports (“BOI’s”).

On December 3, 2024, in the-case of Texas Top Cop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex:), the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction to stop the requirement to file BOI reports by December 31, 2024.

On December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction entered in the case of Texas Top Cop Shop, Inc. v. Garland, pending the outcome of the Department of the Treasury’s ongoing appeal of the district court’s order.  On the basis of the December 23, 2024, ruling, FinCEN extended the deadline to January 13, 2025.

On December 26, 2024, however, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s December 23, 2024, order granting a stay of the preliminary injunction. Accordingly, as of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not currently required to file BOI’s with FinCEN.

As always, we are ready to assist clients in determining whether or not to file BOI’s and to complete any BOI filings that are requested.