UPDATE TO BOI FILING REQUIREMENT
From ECE Resources CA:
Good News for Small Businesses
12/6/2024 UPDATE
On December 3, 2024, a United States District Court in Texas issued an injunction temporarily prohibiting the federal government from enforcing the Corporate Transparency Act ("CTA") and more specifically, the Beneficial Ownership Information ("BOI") filing. Pending a final ruling by the court, companies subject to the CTA are not required to comply with the CTAs BOI reporting requirements or the January 1, 2025 filing deadline.
However, reporting companies may continue to voluntarily submit BOI reports if they choose to do so. This is good news for small businesses.
The next steps are uncertain, but looking ahead:
- The federal government may present new evidence as to why the temporary injunction should not become permanent
- The federal government may appeal the trial court's ruling.
- The federal government could let the injunction stand and not fight it any further, particularly in light of the year-end holidays and the change in administration in January 2025
.
WHAT SHOULD SMALL BUSINESSES DO IN LIGHT OF THE COURT'S RULING?
- If you have already filed BOI, you have complied with the law and don't need to take any action.
- If you have not yet filed BOI, as of today, you are not required to do so and will not be subject to liability while the order remains in force. You can delay any further actions.
- We will continue to monitor the situation. If BOI filings are reinstated in the future, we will publish new guidance for you.
NOTE: The above information is not intended to provide any tax or legal advice to businesses. Businesses are urged to consult their tax and legal advisers before taking any action with respect to BOI filings.
For more information visit ECEResourcesCA.org