LLC Owners. What's this FinCEN thing about?

From my CPA yesterday:

There was an update on BOI reporting requirements indicating that filing the report is no longer mandatory:

On Tuesday, December 3, 2024, a federal district court in Texas issued an order granting a nationwide, preliminary injunction that: (1) enjoins enforcement of the Corporate Transparency Act (CTA) and regulations implementing its beneficial ownership information (BOI) reporting requirements, and (2) stays all deadlines to comply with the CTA’s reporting requirements, including the January 1, 2025 deadline for reporting companies to submit their initial BOI report. The Department of Justice, on behalf of the Department of the Treasury, filed an appeal of the district court’s decision on December 5, 2024.

The Financial Crimes Enforcement Network (FinCEN) has responded that as long as the preliminary injunction remains in effect:

• reporting companies are not required to report BOI to FinCEN; and

• reporting companies will not be subject to liability for failing to report their BOI.

FinCEN also indicated that reporting companies may continue to voluntarily submit BOI reports.

For more information, visit FinCEN Beneficial Ownership Information Reporting.
 
Yeah, I did our two HOAs a week before they suspended it. It's not that hard but it's only a slightly better website than the godawful medexpress thing.
 
Looks like they may have pushed the deadline to 1-13-25. Merry christmas.
 
Its concerning to me that the very first I had heard of this was from an Idaho SOS email on Thursday for an LLC I established in 2023. Were it not for the court appeals I could have been fined $500 a day for an entity that makes no profit, only airplane ownership at a loss. They have my attention now!
 
moparrob66 said:
Its concerning to me that the very first I had heard of this was from an Idaho SOS email on Thursday for an LLC I established in 2023. Were it not for the court appeals I could have been fined $500 a day for an entity that makes no profit, only airplane ownership at a loss. They have my attention now!
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Nobody’s getting fined $500 a day for a very long time. There are probably literally millions of non-compliant LLCs.
 
Axtel4 said:
Whiplash anyone?

www.nfib.com

Fifth Circuit Reverses Course, Blocks Government Enforcement of Burdensome Beneficial Ownership Reporting For Small Businesses - NFIB

The court’s latest decision reinstates the nationwide injunction, blocking the burdensome beneficial ownership information (BOI) reporting requirements for small businesses while the court fully considers the government’s appeal.
www.nfib.com www.nfib.com
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FinCEN's website confirms that reports are not currently required.
 
MauleSkinner said:
Probably in large part due to literally millions who have no way of knowing that it exists.
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Given that (as of right this moment) it's not a legal requirement, LLCs that don't report are therefore not non-compliant.

But yes. At the very least, if they expect every LLC to comply with this, there needs to be a notice sent to literally every LLC out there. I have a hard time believing that they could realistically even process fines against all of those entities, much less enforce them. This just doesn't seem to have been well thought out or executed at any phase.
 
I was surprised that the 5th Circuit blocked the East Texas District Court's injunction. It is typically conservative and leans pro business. It appears that the first decision was by a panel; I presume the last decision would have been en banc (the whole court/all justices in on the decision). My ex wife worked there many moons ago while I lived in New Orleans for my training/residency. They had great Christmas parties- the filings they had to hear from prisoners were quite entertaining.
 
dans2992 said:
Nobody’s getting fined $500 a day for a very long time. There are probably literally millions of non-compliant LLCs.
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Ayn Rand in Atlas Shrugged said:
The only power any government has is the power to crack down on criminals. Well, when there aren't enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.
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Fining "rich" businesses goes over far better with the 47% than broad-based (or any, actually) taxes. Just like a NYC ticket blitz of mom-and-pop shops for failing to clear their sidewalks of snow 6 minutes after the last flake falls. The code enforcers are out before the snowplows; while the sanitation commissioner responsible for clearing the streets is comfy sipping their cocoa at their mountain cabin or coffee from the lanai of their Florida beach condo.
 
the thing is , they say they were aggressively letting people know about this. I don't see that, its not in the mainstream news. How many other places besides here and a couple other forums has anyone heard about it.Yes, maybe they are informing accounting firms, but when does everyone go see their accountants? Not on New Years eve and a lot of firms at the beginning of this year where saying they couldn't fill it out anyway over liability issues as they were not covered insurance wise and where deferring to tax attorneys.
 
the dude said:
the thing is , they say they were aggressively letting people know about this. I don't see that, its not in the mainstream news.
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It’s kind of like where I work they implemented an employee retention program that by the time it got to us was simply extra paperwork.

I’ll be less retained in about 6 months.
 
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