Enforcement of the Beneficial Ownership Information (“BOI”) Report requirement has been paused again due to a vacated stay of the Texas Federal Court Injunction that was filed on Dec 3, 2024.

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.

On Tuesday, December 26, 2024, the merits panel of the Fifth Circuit Court of Appeals vacated the stay of the District Court’s preliminary injunction enjoining the enforcement of the CTA and its reporting rule. The reason was to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is vacated.

However, IF reversed again, the original or extended deadlines and potential penalties for non-compliance may still apply. Businesses concerned about privacy may choose to wait and see if the injunction remains or may decide to proceed with filing regardless of the current injection ping pong game. At this time, there is no crystal ball when enforcement or filing deadlines will resume.

We’re closely monitoring the situation and will update our clients once new information becomes available.