BOI & 5th Circuit Court of Appeals

[Terry D EA]

This just in. The 5th Circuit Court of Appeals has granted the federal government a stay against the preliminary injunction filed on December 3, 2024. All companies that are non-exempt must file the BOI report by the original deadline of January 1, 2025.

A brief summary, the 5th Circuit opinion states the government has made a substantial case on the merits to maintain the CTA's constitutionality. Other words, this aint goin away folks. The mad rush is on.

[Lee B]

https://www.thetaxadviser.com/news/2024/dec/boi-injunction-lifted-reporting-deadline-is-jan-1-2025.html

Well, that sucks!

[Lion EA]

13 January 2025 per NATP in my email 8:34 pm tonight.

[Lee B]

According to an Alert update on FINCEN.gov/boi

"In light of a December 23, 2024, federal Court of Appeals decision, reporting companies, except as indicated below, are once again required to file beneficial ownership information with FinCEN. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, we have extended the reporting deadline as follows:

Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025."

I wonder if this will end up in the Supreme Court sometime next year?

 

 

[Terry D EA]

<<<<<I wonder if this will end up in the Supreme Court sometime next year?>>>>>>

That's a great question. The order for the stay states the federal government has present a substantially strong case supporting the CTA and BOI is not unconstitutional and most likely will succeed. I don't think that honest small businesses that have been around for a while have anything to worry about. I have filed a few of these prior to the injunction and held the rest. After filing the few, the IRS already has all of the information. I wonder what the companies have done or are in the practice of doing that has caused them to file the lawsuits claiming unconstitutionality. 

[Lee B]

I received a letter from my bank informing me that the FDIC required them to have all of the same information as FinCen/BOI.

This is a business checking account that I have had for 32 years!

So far, I am ignoring them.

We will see what happens

[Lee B]

"Request for an En Banc Rehearing on Stay of Injunction in BOI Case Filed

By Ed Zollars, CPA on Dec 24, 2024 01:28 pm

The plaintiffs in Texas Top Cop Shop, Inc., et al. v. Merrick Garland, Attorney General of the United States, et al. are requesting an en banc rehearing based on several arguments related to the panel decision to grant a stay of the district court’s preliminary injunction.[^1] The plaintiffs contend that the panel decision conflicts with Supreme Court precedent, improperly weighed the equities, and failed to consider key aspects of the case."

This is like watching the soap opera, "Days of Our Lives"

 

 

[TAXMAN]

Did I just read that it has another stay has been placed?

[Lee B]

6 minutes ago, TAXMAN said:

Did I just read that it has another stay has been placed?

"WASHINGTON, D.C. (Dec. 27, 2024) – The National Federation of Independent Business (NFIB) applauds the new decision by the U.S. Court of Appeals for the Fifth Circuit in NFIB’s lawsuit challenging the Corporate Transparency Act (CTA), Texas Top Cop Shop, Inc., et al. v. Garland, et al. The court’s latest decision reinstates the nationwide injunction, blocking the burdensome beneficial ownership information (BOI) reporting requirements for small businesses while the court fully considers the government’s appeal. It also nullifies a previous Fifth Circuit order that allowed the government to begin enforcing the CTA and BOI reporting requirements again. "

The BOI  soap opera rolls on!

[Lee B]

According to Bloomberg Tax, This was a different panel from the Fifth Circuit: 

https://news.bloombergtax.com/daily-tax-report/corporate-transparency-act-blocked-by-us-appeals-court-again

[Lee B]

The Fifth Circuit Court has scheduled a hearing to be held on March 25th where the legal arguments pro and con will be heard.

[Pacun]

So, today (12/29/20240 we don't have to file, correct? Only volunteers have to file.

[Lee B]

5 hours ago, Pacun said:

So, today (12/29/20240 we don't have to file, correct? Only volunteers have to file.

The current FinCen Alert reads:

"In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports."

[BTS]

Our government is nuts !!!

[Gail in Virginia]

I am getting whiplash trying to keep up with whether I do or do not have to file this.  

[Lee B]

The Never Ending soap opera rolls on:

By Ed Zollars, CPA on Jan 01, 2025 07:30 pm

"The Department of Justice has filed an emergency request for the US Supreme Court to remove the injunction against enforcement of the Corporate Transparency Act the Fifth Circuit had put back in place on December 26, 2024.[^1] The Department of Justice (DOJ) has made several arguments as to why the Supreme Court should stay the order barring enforcement of the Corporate Transparency Act (CTA), including the following:"

[Pacun]

Coming from Vacation: What's the latest, people have to register or not the law yet? Any extensions of BOI registration deadline?

 

[mcbreck]

At this point, why wouldn't you have it done regardless? You were supposed to have done it by Jan 1st (extended to yesterday) and it takes 15-30 minutes to complete. Saw in an article that less than 1/3rd of companies who should be doing this have actually done so. I'd estimate most of those are Schedule C companies who have no clue.

[Medlin Software, Dennis]

The reluctance on a personal level is puzzling to me. I get it, some argue the merits of the legal aspect, great, argue away, I might agree. But standing on privacy is pointless as there are provisions to keep all but the names private. My own worry, the address of others (I assume mine can be found with even a novice effort), is resolved via a Brown PMB. Managing the data of others, is resolved by requiring each to register personally, and giving me their number (so I have no idea or responsibility for the address or information they enter).

And to be clear, I have been threatened by a nut, who is spending the rest of their days at a federal facility, and said nut was able to find my personal information, even though it was not on any company documentation at the time. Privacy is as gone as the one income family with three kids, two cars, and a paid off home.

[Lee B]

 I can't go live off the grid and pay for everything with cash. Personally I want to limit the number of institutions that think they need all of my personal information.

For example, my doctor's office wants to scan my Drivers License every time I check for an appointment. I will  show it to them, but I won't let them scan it.

There is lengthy list of businesses, institutions and governmental agencies that have been hacked.

All I can do is freeze my credit and limit the exposure of my personal information.