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Nationwide Injunction on BOI Reporting Lifted — Filing Deadline Remains Jan. 13, 2025
If your startup is structured as a C Corporation here’s an important update on the Beneficial Ownership Information (BOI) report—a legal filing requirement you may have heard about. The late penalties for missing the the deadline are up to $591/day and up to 2 years in prison.
A federal district court ruled on December 3 that the Corporate Transparency Act (CTA) is likely unconstitutional and issued an order preventing enforcement of the CTA and its associated beneficial ownership information (BOI) reporting requirements. This injunction temporarily barred the Financial Crimes Enforcement Network (FinCEN) from enforcing BOI filing rules while the case was under review.
On December 5, the Department of Justice (DOJ) filed a notice of appeal to the Fifth Circuit, requesting a stay on the injunction and challenging the prohibition on FinCEN’s enforcement of BOI reporting nationwide.
Subsequently, on December 13, the Attorney General filed an emergency motion to lift the injunction, aiming to allow FinCEN to enforce BOI reporting requirements.
On December 23, the Fifth Circuit Court granted FinCEN’s appeal, lifting the nationwide injunction on BOI reporting. The AICPA is urging FinCEN to consider delaying enforcement. However, as of now, the BOI filing deadline remains set for January 13, 2025.
TLDR;
The original BOI filing deadline was January 1, 2024.
December 3, 2024 - a U.S. Court blocked the BOI reporting Requirement
December 5, 2024 - the U.S. Attorney General Filed an appeal against the courts decision
December 23, 2024 (today) - the Fifth Circuit Court granted FinCEN’s appeal, lifting the nationwide injunction on BOI reporting
December 23, 2024 (today) - FinCEN extended the filing deadline to January 13, 2025
Here’s how to file on your own: Founders Guide to Filing BOI
If you would like to outsource it, Fondo will file your BOI for you for $1 as part of your TaxPass Trial (deal ends 12/27): fondo.ai/1
What’s the BOI Report?
The BOI report is part of the Corporate Transparency Act (CTA). It’s a new federal rule that requires certain U.S. companies to report detailed information about their owners to FinCEN, a government agency.
The goal? Fight fraud and increase financial transparency.
The challenge? It introduces a lot of new compliance work for small startups.
The original deadline to file the BOI report was January 1, 2025. But then it got complicated. For companies incorporated before January 1, 2024 or after September 4, 2024 and The new filing deadline is January 13, 2025.
What Happened?
On December 3, 2024, a U.S. court blocked the BOI reporting requirement by issuing a preliminary injunction.
- What’s a Preliminary Injunction?
Think of it as a temporary "pause button." The court said, “We’re not convinced this rule is fair or constitutional, so businesses don’t have to follow it for now.”
However, this pause wasn’t permanent. It’s a decision to hold things off while the case gets a deeper review.
The Government’s Response: An Appeal
Two days later, on December 5, 2024, the U.S. Attorney General filed an appeal against the court’s decision.
- What’s an Appeal?
This is when one side in a legal case says, “We don’t agree with this ruling, so we’re asking a higher court to take another look and potentially overturn it.”
The appeal will be reviewed by the Fifth Circuit Court of Appeals, which now has to decide whether to uphold the injunction or allow the BOI deadline to move forward as planned.
The Fifth Circuit Court granted FinCEN’s Appeal
On December 23, 2024 the Fifth Circuit Court granted FinCEN’s appeal, lifting the nationwide injunction on BOI reporting
FinCEN extends the filing deadline
On December 23, 2024 FinCEN extended the filing deadline For companies incorporated before January 1, 2024 or after September 4, 2024 and The new filing deadline is January 13, 2025
What Should Founders Do?
File the BOI report by January 13, 2024 to avoid penalties of $591/day and up to 2 years improsonment.
Here’s how to file on your own: Founders Guide to Filing BOI , BOI FAQ
If you would like to outsource it, Fondo will file your BOI for you for $1 as part of your TaxPass Trial (deal ends 12/27): fondo.ai/1
Read more 👉 Full BOI FAQ for Startups
Need help filing? Get it done for $1 [until 12/27] here: fondo.ai/1
