Is the BOI already dead?
A federal judge has ruled that the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting requirement are unconstitutional, but only for the National Small Business Association (NSBA) and its 60,000+ members as of March 1, 2024. The ruling, however, has the potential to have nationwide consequences as other court cases may now arise as a result.
Small businesses who are required to file should continue to meet compliance requirements while waiting for official court decisions. Businesses that fail to file on time are risking significant civil fines, interest, penalties, and possible criminal penalties if the Treasury prevails in the appeals process. Filing provides peace of mind and ensures compliance, even if it means potentially losing filing fees and advisor costs. The BOI requires small business owners to submit a copy of their driver’s license before January 1, 2025.
