The Financial Crimes Enforcement Network (FinCEN) may revise its beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA), depending on the resolution of an ongoing legal case. On February 5, 2025, the government requested a temporary suspension of a nationwide injunction issued by a Texas court. FinCEN intends to extend BOI filing deadlines by 30 days if the request is approved, impacting approximately 32 million small businesses. Given these legal uncertainties, business owners should stay updated on potential changes to maintain compliance and avoid penalties.
As the legal process unfolds, FinCEN plans to evaluate potential modifications to CTA reporting requirements to reduce compliance burdens for lower-risk entities while focusing enforcement on major national security threats. The Department of Justice (DOJ) emphasized that pausing the preliminary relief would facilitate this review, noting this in its request submitted alongside a notice of appeal.
The government’s motion asks the Eastern District of Texas to lift its nationwide injunction (Samantha Smith and Robert Means v. U.S. Department of the Treasury, No. 6:24-CV-336 (E.D. Texas 1/7/25)) while the appeal is underway. The filing references the Supreme Court’s recent decision to overturn another nationwide BOI reporting injunction (Texas Top Cop Shop, Inc. v. Garland, No. 4:24-CV-478 (E.D. Texas 12/3/24)). As an alternative, the government requests that the court restrict the injunction’s effect to only the plaintiffs in the case.
While legal challenges persist, FinCEN has adjusted civil penalties due to inflation. Under the Federal Civil Penalties Inflation Adjustment Act, the daily fine for failing to comply with BOI requirements or misusing BOI data increased from $591 to $606 as of January 17. When the CTA was first enacted in 2021, the original penalty was set at $50). Enforcement of these penalties remains paused as litigation continues.
Business owners should stay informed about BOI reporting obligations to avoid penalties and remain compliant. With potential rule modifications on the horizon, keeping track of regulatory updates is essential. We will continue to monitor the situation and share any new developments. In the meantime, contact Sal Schibell at (732) 539-7328 or salschibell@lrscpa.com with questions or concerns.