NOTE: On December 3, 2024, a federal court in Texas issued a nationwide temporary injunction against enforcement of the reporting requirement detailed below. Possible appeals and other legal actions may occur, making the ultimate effect of this decision uncertain at this time. Texas REALTORS® will provide updates as they are available.
Many businesses are required to file a new federal report by January 1, 2025, to provide company ownership information intended to help the U.S. Department of the Treasury fight money laundering, terrorist financing, and other corrupt financial activities. Required information incudes details about the entity and information about the entity’s beneficial owners.
Companies required to file this information include corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States. Entities not required to be filed with a secretary of state or similar office do not need to file a BOI report. Such non-filing entities include common law trusts, general partnerships, and sole proprietorships.
Note that companies formed in 2024 are required to file within 90 days after formation, and entities formed after January 1, 2025, must file within 30 days.
Penalties for failure to file or providing false or fraudulent information includes fines of $500 per day up to a maximum of $10,000 and up to two years in prison.
Access guidance documents and FAQs to get started, or read a more-detailed article from the March/April issue of Texas REALTOR®.
Interested in learning more? Register for the Real Estate Compliance Webinar on the FinCEN Beneficial Ownership Rule on December 10 at 1 P.M. Central.
http://www.jdsupra.com/legalnews/texas-court-halts-corporate-8841172/
http://www.nfib.com/news-article/texas-district-court-strikes-down-beneficial-ownership-reporting-requirements/
The BOI report has been ruled Unconstitutional. http://natlawreview.com/article/texas-federal-court-blocks-corporate-transparency-act-halts-nationwide-enforcement
This is good news, I am so glad there are people looking out for small businesses. So, are we required to still file this since the final judgement is not in place yet?
Based on what I have read, you are not required right now. However, it can still be filed if one chooses to do so. I would suggest checking in with your CPA to confirm. Have a super day!
I paid it because I didn’t want to be fined but This new rule irritates me. My CPA told me it had to be paid. I had to pay $140 to give them my LLC name, EIN#, and address which the government already has because of my tax return and EIN. I feel its just another way for government entities to take more of my money.
What did you pay? I filed mine and didn’t cost me anything.
So if you (me) already filed, will those get “shredded” like they don’t exist? I saw no understanding of its purpose when IRS and SoS have what they need.