On December 3rd, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction enjoining enforcement of the BOI reporting rules and has stayed the compliance deadline. The court stated plaintiffs in the case Texas Top Cop Shop, Inc et al v. Merrick Garland, Attorney General of the United States, et al. were likely to succeed on the merits of their claims that the reporting requirements are unconstitutional. A copy of the ruling can be found here.
This means FinCEN cannot enforce the December 31, 2024, BOI deadline as long as the preliminary injunction is in place. It is important to note that the injunction is a preliminary injunction and can be appealed to the U.S. Appellate Court where it could be reviewed and overruled. At this point, it is unknown if the U.S. Government will appeal the injunction, the timing of any potential appeal, whether the injunction will be overruled, and the date of any subsequent reporting deadline if the reporting requirement is reinstated. We expect that FinCEN will issue guidance concerning the injunction, but as of this writing no such guidance has been issued.
We believe that, if an entity still wishes to file its BOI, it may do so, but entities may want to delay any such filing until there is further guidance. We encourage you to continue monitoring developments of this case.
Please contact us if you have any questions about BOI. Please notify us in writing on or before December 10, 2024, if you would still like our assistance to file the BOI by December 31, 2024, in light of the injunction.