The legal back-and-forth surrounding Beneficial Ownership Information (BOI) reporting continues. On February 5, 2025 the federal government appealed the nationwide injunction blocking CTA enforcement (Smith, et al. v. U.S. Department of Treasury, et al.). Additionally, the government requested a stay on the injunction preventing the reporting requirements while the appeal is pending.

As of February 5, 2025, businesses are not required to report Beneficial Ownership Information to FinCEN and will not face penalties for failing to do so.

However, this may change based on the ruling in Smith. If the stay is granted, as it was in the Texas Top Shop case, reporting requirements will go back into effect.

Update from FinCEN

In response to the appeal and stay request, FinCEN updated its guidance to include the following:

“If the district court’s order is stayed, thereby allowing FinCEN’s Reporting Rule to come back into effect, FinCEN intends to extend the reporting deadline for all reporting companies 30 days from the date the stay is granted.”

FinCEN has also stated that it will assess options to modify reporting deadlines or requirements for lower-risk small businesses while prioritizing entities that pose national security risks.

For now, BOI reporting remains paused.  Businesses should stay alert for potential changes, as a court decision could reinstate reporting requirements with little notice. If the stay is granted, businesses should be prepared to file BOI reports within 30 days of the ruling. We’ll continue monitoring the situation and provide updates as new information becomes available.

Note – please contact your attorney/legal counsel if you need help filing this form. Wegner CPAs is prevented from filing this report for your business/LLC.