BOI Update: DOJ files appeal in the Samantha Smith case
February 06, 2025
Original publish date: January 23, 2025, 12:30 PM PT
Updated February 6, 2025: DOJ files appeal in the Samantha Smith case
On February 5, 2025, the U.S. Department of Justice (DOJ), representing the Financial Crimes Enforcement Network (FinCEN), filed a motion to appeal the ruling in the Samantha Smith case and requested a stay on the current nationwide injunction. If the injunction is lifted, FinCEN plans to grant a 30-day extension for filing the Beneficial Ownership Information (BOI) report.
The AICPA is urging FinCEN to consider extending the filing deadline further to address the ongoing confusion and lack of awareness regarding the filing status. Meanwhile, the AICPA continues to advise those assisting clients with BOI report filings to collect the necessary information from clients and be prepared to submit the report should the injunction be lifted.
Updated January 24, 2025, 8:30 AM PT
FinCEN has posted the following alert on its webpage:
"In light of a recent federal 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 ownership information reports.
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"On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports."
Updated January 23, 2025, 3:10 PM PT:
1. BOI Injunction is Still in Place:
- While the Supreme Court lifted the injunction in the Texas Cop Top Shop case, the Samantha Smith case has maintained an injunction.
- Although the Samantha Smith injunction technically applies to its plaintiffs, the courts have set it as a nationwide injunction.
2. Filing is Voluntary for Now:
- BOI reporting remains voluntary until all ongoing legal challenges are resolved.
3. Guidance Expected Soon:
- We anticipate receiving updated guidance from FinCEN (Financial Crimes Enforcement Network), U.S. Treasury, in the near future.
BOI Update: Supreme Court Allows Enforcement of Corporate Transparency Act
Today, the Supreme Court granted a stay on the December 5, 2024, order from the Eastern District of Texas related to BOI (Beneficial Ownership Information) reporting.
This means the preliminary injunction has been lifted while the case goes through the appeals process in the Fifth Circuit and potentially the Supreme Court, if certiorari is granted.
We’re now waiting for the Financial Crimes Enforcement Network (FinCEN) under the U.S. Treasury to issue updated guidance on the specifics and timing for BOI reporting deadlines.
As this continues to develop, we’ll keep you posted on the WSCPA blog, LinkedIn and in the Present Value newsletter.
Learn more here: Supreme Court Allows Enforcement of Corporate Transparency Act (Bloomberg Tax)