December 26,2024 – In a surprising move, the Fifth Circuit Court of Appeals reversed its decision made on December 23, 2024, to reinstate a lower court’s nationwide preliminary injunction on Beneficial Owner Information Reporting.  In its order, the Fifth Circuit Court of Appeals said “ in order to preserve the constitutional status quo while the merits panel considers the parties weighty substantive arguments, that parts of the motion-panel order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is vacated”.

On the BOI website, an alert was issued on December 27, 2024 stating “in light of the recent court order, reporting companies are not currently required to file beneficial ownership information with FinCen and are not subject to liability if they fail to do so while the order remains in force.  However, reporting companies may continue to voluntarily submit beneficial information reports”.

Since then, the Department of Justice has filed an emergency application with the Supreme Court to seek a stay on the district court’s nationwide injunction.  It is expected the Supreme Court will make a quick decision, within days or weeks, on the emergency stay application.

We are monitoring this issue closely and any updates will be posted on our website.

Polk & Associates

Large enough to serve a diverse clientele, yet small enough to maintain a hands-on approach, we are committed to maintaining the highest accounting and ethical standards with continuous education, extensive research resources, and excellent quality control.

Polk and Associates is a member of the Michigan Association of Certified Public Accountants, and the American Institute of Certified Public Accountants. The firm participates in the AICPA Peer Review Program, and has always received the highest level of award for its audit practice and quality control.