Judge blocks federal BOI reporting requirements

SPAAR has published information about Beneficial Ownership Information (BOI) reporting for the past month. A law known as the Corporate Transparency Act became effective on January 1, 2024, after being passed by Congress in 2021 to crack down on money laundering, financing of terrorism, tax fraud and other illegal acts.

The Act states that all applicable small business entities are required to file BOI reports -- information about ownership of the business -- to the Financial Crimes Enforcement Network (FinCEN) by January 1, 2025.

SPAAR recently learned that a US District Court decision issued a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act’s BOI reporting requirements.

SPAAR is providing this general information as an update rather than advice and recommends members consult with a trusted tax professional or attorney to understand any BOI reporting obligation.