Current Status of Beneficial Ownership Information Reporting (BOIR)
Go to https://fincen.gov/boi for the latest up-to-date information and guidance.
The Current Status of Beneficial Ownership Information Reporting (BOIR) requirements, established under the Corporate Transparency Act (CTA), have been a significant topic of discussion and legal scrutiny in recent months. The CTA, passed in 2021, mandates that certain entities disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) to combat financial crimes such as money laundering and tax evasion.
Recent Developments
As of early 2025, the status of BOIR is in a state of flux due to ongoing litigation. A federal court order has currently paused the enforcement of BOIR requirements. This injunction means that reporting companies are not required to file their beneficial ownership information with FinCEN and are not subject to penalties for non-compliance while the order is in effect[1][2].
Despite the injunction, FinCEN has indicated that companies may still voluntarily submit their beneficial ownership information reports. This voluntary submission can be done through FinCEN's BOI E-Filing System, which remains operational[1].
Legal Challenges
The legal challenges to BOIR primarily revolve around concerns about privacy and the burden of compliance, especially for small businesses. Critics argue that the reporting requirements infringe on constitutional rights and impose undue burdens on businesses. These concerns have led to multiple court cases, resulting in the current injunctions[2][3].
One notable case is Samantha Smith and Robert Means v. U.S. Department of the Treasury, where the plaintiffs argued that the BOIR requirements violated their First and Fourth Amendment rights. The court's decision to issue an injunction in this case has significantly impacted the enforcement of BOIR[1].
Future Outlook
The future of BOIR remains uncertain as the legal battles continue. The U.S. Department of Justice has filed a notice of appeal against the injunction, and if the appeal is successful, FinCEN plans to extend the reporting deadline by 30 days to allow companies to comply with the requirements[1].
In the meantime, businesses should stay informed about the latest developments and consider voluntarily submitting their beneficial ownership information to FinCEN. This proactive approach can help ensure compliance if the reporting requirements are reinstated.
For more detailed information and updates on BOIR, you can visit the official FinCEN website here[1].
References
