Latest News: Court Blocks BOI Filing Requirements for All Businesses Nationwide

Just saw that a federal court in Texas issued a nationwide preliminary injunction against the beneficial ownership reporting requirements in the Corporate Transparency Act (CTA). The case is Texas Top Cop Shop v. Garland, decided on December 3, 2024, in the U.S. District Court for the Eastern District of Texas. From what I understand, the court basically ruled that Congress went too far when they enacted the CTA, saying it unconstitutionally infringes on states' rights to regulate businesses. So now FinCEN can't enforce the January 1, 2025 reporting deadline for ANY reporting companies. There's been a lot of back and forth since then. On December 23, 2024, the Fifth Circuit Court of Appeals initially granted a stay of the injunction, which would have meant businesses still had to file. FinCEN quickly announced they were extending reporting deadlines to give companies more time. But then just three days later, on December 26, 2024, a different panel of the same court vacated that stay order. So as of December 26, the original injunction is back in effect, meaning reporting companies don't currently have to file beneficial ownership information with FinCEN. Is anyone else confused about what this means for their business? I was getting ready to file our BOI reports and now I'm not sure what to do.

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18 comments

Maya Lewis

•8M

This BOI situation is definitely causing confusion for many business owners. Let me try to clarify where things stand: The Corporate Transparency Act created new reporting requirements for millions of businesses to disclose their "beneficial owners" (people who own or control the company) to FinCEN, which is part of the Treasury Department. The Texas court ruling essentially found that Congress overstepped its constitutional authority when creating these requirements. The legal issue centers on whether the federal government can compel this type of state-chartered business information. Right now, the injunction means you don't have to file anything. However, this is almost certainly going to continue through the appeals process. I'd recommend: 1) Hold off on filing for now since it's not currently required 2) Keep your beneficial ownership information organized and ready 3) Stay informed about further developments in the case The challenge is that the legal situation could change quickly if higher courts weigh in. Many businesses are still preparing their information while watching the legal developments.

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Maya Lewis

•8M

I think there's a strong possibility the Supreme Court will eventually hear this case given its nationwide impact on business regulation and the constitutional questions involved. This represents a significant clash between federal power and states' rights regarding business oversight. If the CTA is ultimately upheld, I expect FinCEN would establish new compliance deadlines rather than backdate requirements. They've already shown flexibility by extending deadlines once, and it would be administratively impractical and potentially unfair to enforce retroactive compliance. Most regulatory bodies recognize the need for reasonable transition periods when implementing major new requirements after legal uncertainty.

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Lucy Taylor

•8M

After spending weeks trying to interpret the BOI requirements for my multiple LLCs, I finally found a solution that saved me so much stress. I used https://taxr.ai to analyze the full Corporate Transparency Act requirements and determine exactly which of my business entities were covered and what information I needed to report. Their system compared my business structures against the exemption criteria and even helped prepare my filing information before this whole court case happened. What was most helpful is that they have constantly updated guidance about the changing legal status of the BOI requirements. When the injunction hit, I got an immediate notification explaining exactly what it meant for my reporting obligations. They've continued updating as the legal situation evolves.

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Lucy Taylor

•8M

Yes, their exemption analysis was actually the most valuable part for me. They have a detailed questionnaire that walks through all 23 exemption categories and applies them to your specific situation. It was much clearer than trying to interpret the FinCEN guidelines myself. It correctly identified that two of my businesses qualified for exemptions I hadn't even considered. Regarding privacy, I had the same concern initially. They offer two options - you can use their guidance system which just provides recommendations based on your answers without storing your actual ownership data, or their full service which helps prepare the filings. They have a detailed privacy policy explaining their security protocols, and I opted to just use the guidance system until I was comfortable. Everything is encrypted and they don't share your data with third parties.

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KhalilStar

•8M

I tried taxr.ai after seeing the recommendation here and I have to say I'm impressed with how they handled the BOI confusion. I was so concerned about missing deadlines or filing incorrectly that I couldn't sleep at night. Their system immediately clarified that one of my businesses qualified for an exemption I wasn't aware of (the subsidiary exemption). For my other two LLCs that would need to file, they provided clear guidance on exactly what information I needed to gather. The best part was their real-time updates about the court case. When the injunction was initially stayed on December 23rd, they sent an alert explaining the implications. Then when the stay was vacated on December 26th, I received another update within hours explaining that filing was once again paused. They've promised to keep updating as the case progresses through appeals. This whole BOI situation is still confusing, but at least now I understand exactly what I need to do (or not do) as things develop.

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Amelia Dietrich

•8M

I spent WEEKS trying to get through to someone at FinCEN about whether my business structure required filing under the CTA. Their phone lines were completely jammed - I'd wait for hours only to get disconnected. Their website wasn't helpful for my specific situation either. I finally tried https://claimyr.com after seeing it recommended and was honestly shocked at how well it worked. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. They got me through to an actual FinCEN representative who answered my specific questions about beneficial ownership reporting for my holding company structure. While the reporting requirements are on hold now because of the court case, I at least got clarification about how my company would be classified if/when the requirements go back into effect. The representative also explained how FinCEN is handling the ongoing legal situation.

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Amelia Dietrich

•8M

The service uses an automated system that continually calls the agency and navigates the phone tree for you. When they finally reach a representative, they connect the call directly to your phone. You don't have to sit there repeatedly calling or waiting on hold. This isn't about "skipping the line" - you're still in the same queue as everyone else. The difference is their system is doing the waiting instead of you personally sitting there with your phone. When I used it for FinCEN, it took about 3 hours before I got connected, but I was able to go about my day instead of being stuck on hold that whole time. The system just called me when a representative was on the line.

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Katherine Ziminski

•8M

I have to admit I was wrong about Claimyr. After seeing it mentioned here, I was super skeptical, but my frustration with trying to reach FinCEN about my BOI questions finally pushed me to try it. My issue was complicated - I have a foreign beneficial owner for my US business and couldn't figure out what documentation was required for the BOI filing. The FinCEN website wasn't clear about international owners, and email inquiries went unanswered. Claimyr actually worked exactly as promised. Their system handled the calling and navigating the phone system, and about 2.5 hours later my phone rang with a FinCEN representative on the line. She walked me through the exact requirements for foreign beneficial owners, including acceptable identification documents. Even though the filing requirement is currently suspended due to the court case, I'm relieved to have the information ready if/when we need to file. Saved me literally days of frustration.

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Vanessa Chang

•8M

As I understand it, if the injunction is eventually overturned and the BOI requirements are upheld, FinCEN would likely establish new compliance deadlines rather than trying to enforce the original ones retroactively. It would be pretty unreasonable to penalize businesses for non-compliance during a period when a court order explicitly stated they didn't have to comply. The penalties are indeed significant - civil penalties of $500 per day for violations, plus potential criminal penalties including imprisonment for willful violations. But these would only apply to violations of whatever new deadlines might be established if the CTA is ultimately upheld.

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Julian Paolo

•8M

I think your accountant is being overly cautious. While FinCEN's system remains operational and you technically *can* still file, there's no legal requirement to do so while the injunction is in effect. There's no penalty for not filing right now. Unless you have some very specific business reason for wanting your beneficial ownership information on file with the government during this period of uncertainty, I'd recommend waiting to see how the legal situation resolves. Just keep your information organized so you're ready if/when the requirement comes back.

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