Here is Your Christmas Present - NOT

The Fifth Circuit granted a stay to the federal government on the BOI reporting and indicated it is likely constitutional.

Photo by K. Mitch Hodge on Unsplash

The Fifth Circuit just granted a stay of the federal injunction on the Beneficial Ownership Information reporting required under the Corporate Transparency Act.

This means that almost all farm entities (LLCs, corporations, LLPs, LPs, LLLPs, etc.) that were created before 2024 must be filed with www.fincen.gov by next Tuesday at 11:59 ET.

If not, you are likely facing a $591 per day penalty per entity. However, we do know that Congress had included a one-year extension of the filing requirement in the original CR that was defeated last week in Congress.

Will Congress early next year pass a bill extending the BOI reporting until December 31, 2025. Who knows and right now if you don’t file the report by next Tuesday, you may face the penalty.

Remember you don’t have to file for entities that have at least $5 million of revenue and at least 20 full-time employees. But for all of your other entities you must file the report.

For new entities created during the last quarter of 2024, you have 90 days to file that report which may put the deadline sometime in early 2025.

Also, the Fifth Circuit which is typically the most conservative circuit in the country, appears to indicate the government will win and it will be ruled constitutional. Either way, it will be appealed to the Supreme Court and in the meantime, you are required to file by December 31, 2024, for most entities.