Breaking News: Enforcement of Beneficial Ownership Information (BOI) Reporting Requirement is Blocked by Federal Court
Breaking News: Enforcement of Beneficial Ownership Information (BOI) Reporting Requirement is Blocked by Federal Court
Nationwide Preliminary Injunction: Reporting Companies Do Not Need to Comply with Upcoming Deadline.
Subject: Urgent Update: Federal Court Blocks Enforcement of Beneficial Ownership Reporting Requirement
Dear Chiropractors,
Urgent Update, a federal court in Texas granted a nationwide preliminary injunction blocking enforcement of the Corporate Transparency Act (CTA) and the rules adopted by the Financial Crimes Enforcement Network (FinCEN) that would have required corporations and LLCs to disclose and report their beneficial ownership information (BOI) to FinCEN by January 1, 2025. Beneficial owners are the individuals who own or control the company.
In other words, under the injunction order, reporting companies do not need to comply with the BOI reporting requirements, pending further action by the court.
It must be noted that this is a preliminary injunction, not a final decision. As such, it is a temporary pause. Business experts recommend that corporations and LLCs continue to monitor the situation and be ready to comply with the requirement if the injunction is lifted or they are otherwise revived, such as through an appeal, as the case moves forward.
The Mass Chiro Legal Affairs team will continue to monitor this situation closely and provide updates as needed.
Disclaimer: This article is meant to be information-only and does not constitute legal advice regarding any specific matter or situation. Legal information is not the same as legal advice, which is the application of law to an individual’s specific matter, situation, or circumstances. Legal advice may be given only on the basis of specific facts relayed by a client to an attorney. MCS goes to great lengths to make sure our information is as accurate, useful, and up-to-date as possible. We recommend, however, that you consult an attorney if you want or need professional assurance that our information, and your interpretation of it, applies to your specific legal situation.
