Reinstatement of BOI Reporting Requirements Following the 5th Circuit Appeals Court Decision

In a recent development, the 5th Circuit Appeals Court has reinstated the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA) following a nationwide Stay of Injunction. This decision underscores the importance of understanding and preparing for compliance with the BOI reporting mandates.

The Impact of the 5th Circuit Decision

The nationwide Stay of Injunction had temporarily halted the enforcement of BOI reporting requirements, leading to uncertainty for many businesses. With the 5th Circuit Appeals Court’s decision to lift the stay, the requirements are now reinstated, and affected entities must prepare to comply with a very short extension.

Just a couple of reminders

What Are BOI Reporting Requirements?

BOI reporting requires entities to disclose detailed information about their beneficial owners, defined as individuals who:

Exercise substantial control over the entity, or
Own or control at least 25% of the entity’s equity interests.

The information required includes:

Full legal name
Date of birth
Residential or business address
A unique identifying number from an acceptable identification document (e.g., driver’s license or passport).

Businesses subject to these requirements must file an initial report with FinCEN and ensure the information is accurate and updated whenever changes occur.

Who Must Comply?

Most corporations, limited liability companies (LLCs), and other similar entities formed or registered in the United States will need to comply. However, there are exceptions for larger entities, such as those with more than 20 employees, over $5 million in annual revenue, and an operating presence in the U.S.

Key Deadlines

Entities formed before January 1, 2024, must file their BOI report by January 13, 2025. For entities formed after January 1, 2024, the report must be filed within 30 days of formation or registration.

Our Position on BOI Reporting

At HawkEye Accounting and Tax, we recognize the importance of complying with these reinstated reporting requirements. However, we have taken the stance that BOI reporting requirements are deemed to be legal services. Since HawkEye Accounting and Tax is not a law firm, nor do we employ any attorneys, we will not be responsible for BOI reporting requirements under the Corporate Transparency Act (CTA).

To ensure our clients are properly served, we are recommending Main Street Business Service (a Mark J. Kohler company) to complete this requirement. Main Street Business Service is well-versed in the complexities of BOI reporting and will provide you with the necessary expertise. Please note that Main Street Business Service will bill you separately for this service.

If you have questions about the CTA or how these requirements impact your business, feel free to contact our office for guidance. While we cannot handle BOI reporting directly, we are happy to assist you in connecting with qualified professionals who can.

Your compliance is critical, and we are here to support you in navigating these changes.

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