Due to a second injunction by a Texas Judge, Beneficial Ownership Information (BOI) filing requirements remain on hold despite the Supreme Court’s stay on the initial injunction.
The back-and-forth volleying between the U.S. Treasury and legal challengers continues across various court cases. On January 23, the Supreme Court ruled a stay on the injunction in Texas Top Cop Shop, Inc. v. McHenry that initially paused filings though November and December. The Supreme Court did not issue an opinion related to this stay or on the constitutionality of the original reporting requirement.
At the same time as this stay on the initial injunction, a second Texas Judge granted another nationwide injunction in the case of Smith v. U.S. Department of the Treasury. As the second case is based on different facts and arguments, the injunction will remain in place despite the Supreme Court’s stay on the previous case. The Treasury Department has not yet filed an appeal on this second injunction.
FinCEN continues to state that the new Beneficial Ownership Reporting is currently unenforceable but allows business owners to continue to file voluntarily.
Businesses that have not yet filed should be advised to continue to accumulate their beneficial ownership information to be ready if and when this act goes into effect.