DOJ Appeals Order Pausing BOI Reporting: What It Means for Business Owners
- Marino Tax Solutions
- Feb 14
- 3 min read
The Department of Justice (DOJ) is taking action to reinstate beneficial ownership information (BOI) reporting requirements after a Texas federal judge temporarily halted their enforcement. This legal battle has significant implications for business owners across the country, especially those navigating their obligations under the Corporate Transparency Act (CTA).
Background on the BOI Reporting Requirement
Under the Corporate Transparency Act, many businesses are required to file BOI reports with the Financial Crimes Enforcement Network (FinCEN) to disclose information about their beneficial owners. This initiative aims to combat financial crimes such as money laundering and fraud by increasing corporate transparency.
However, on January 7, a federal judge from the Eastern District of Texas issued an order blocking FinCEN from enforcing the BOI reporting requirement while a constitutional challenge to the law proceeds. This ruling has put the implementation of the CTA on pause nationwide.
DOJ’s Appeal and Potential Outcomes
The DOJ has filed an appeal with the U.S. Court of Appeals for the 5th Circuit, asking that the BOI reporting requirement be reinstated while the lower court continues to review the case. Should the appellate court rule in favor of the DOJ, FinCEN has announced that all reporting entities would be required to submit their BOI reports within 30 days from the reinstatement order.
During this 30-day window, FinCEN plans to review and potentially adjust deadlines for lower-risk entities, such as small businesses, to prioritize those that pose the highest risk to national security.
House Proposal to Delay BOI Reporting for Pre-2024 Entities
Meanwhile, the U.S. House of Representatives has passed a bipartisan bill (H.R. 736) proposing to delay the BOI reporting requirement for entities formed before January 1, 2024, until January 1, 2026. However, for this extension to take effect, the bill must still pass the Senate and be signed into law by President Donald Trump.
What Business Owners Should Do Now
Stay Informed: The situation is evolving, and deadlines could shift quickly depending on court rulings or legislative changes.
Consider Voluntary Filing: Although FinCEN is not currently enforcing BOI reporting, voluntary submissions are being accepted. Early compliance may reduce future administrative burdens.
Assess Your Risk Profile: Entities at lower risk, such as small businesses, may benefit from potential deadline adjustments if the DOJ's appeal succeeds.
Why Marino Tax Solutions?
The legal and legislative landscape around BOI reporting remains uncertain, but proactive business owners can stay ahead of compliance requirements by monitoring updates and preparing for possible changes.
At Marino Tax Solutions we are committed to informing you about the latest tax policies and programs, including updates on the BOI reporting, to ensure our clients receive accurate guidance for making informed financial choices.
Curious about how these tax changes could impact your personal or business finances? Marino Tax Solutions is here to assist you. Contact us today for a Free Consultation and customized tax planning solutions to help you stay ahead and capitalize on these new opportunities.
Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered tax advice. Tax laws are complex and subject to change. Please consult with a tax professional like Marino Tax Solutions to discuss your specific circumstances.
