UPDATED: BOI Reporting Rules—The Saga Continues

RFD-TV Legal Expert Roger McEowen with Kansas’ Washburn School of Law breaks it down in his latest Firm to Farm blog post.

court documents_AdobeStock_501810199.png

Adobe Stock

UPDATE (12/27/2024):

The Fifth Circuit has vacated its decision of Monday, Dec. 23, which restores the nationwide preliminary injunction against enforcement of the beneficial ownership information reporting rules. The merits panel of the Fifth Circuit stated in its order Thursday evening, December 26, that its decision was necessary “to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.” The court also expedited the appeal to the “next available oral argument panel,” which it appears could be the week of January 6, 2025, based upon the court’s published schedule.

Previous Article

Late today (12/23/2024), the U.S. Court of Appeals for the Fifth Circuit lifted the preliminary injunction imposed by a federal district court in Texas against the government’s enforcement of the BOI reporting rules. This means that as of now (early evening on 12/23/24), the reports must be filed by covered entities by Jan. 1, 2025. The appellate court cited the government’s authority to regulate commerce under the Commerce Clause to determine that the government was likely to prevail on the merits.

But that’s the point. The reporting requirement is not triggered on a business engaging in commerce. It’s triggered upon registering with a state office regardless of whether any commerce has been conducted.

Nevertheless, Jan. 1 is not the key date to remember — it’s now January 13, 2025. Here’s what the FINCEN has posted on its website:

“In light of a December 23, 2024, federal Court of Appeals decision, reporting companies, except as indicated below, are once again required to file beneficial ownership information with FinCEN. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, we have extended the reporting deadline as follows:

  • Reporting companies that were created or registered prior to January 1, 2024, have until January 13, 2025, to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)
  • Reporting companies created or registered in the United States on or after September 4, 2024, that had a filing deadline between December 3, 2024, and December 23, 2024, have until January 13, 2025, to file their initial beneficial ownership information reports with FinCEN.
  • Reporting companies created or registered in the United States on or after December 3, 2024, and on or before December 23, 2024, have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
  • Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
  • Reporting companies that are created or registered in the United States on or after January 1, 2025, have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.”

The movement to Jan. 13, 2025, will allow the new Congress to address the matter (which it should have taken care of in the year-end legislation). Of course, if an emergency writ is filed with the Supreme Court, the Supreme Court could address the matter before that. I suspect this issue is far from over.

Stay tuned…

Related Stories
Acquiring farm or ranch land, as well as the key concepts and issues are the topics of today’s blog post by RFD-TV Agri-legal Expert Roger McEowen.
With 2023 projected to be a difficult year for agricultural producers, Chapter 12 filings may increase. One of the requirements to get a Chapter 12 reorganization plan approved is that be filed in “good faith.” In this blog post, RFD-TV Legal Contributor Roger A. McEowen explains exactly what farmers need to know about the process.
The failure of a grain elevator can cause large problems for farmers and for the local community it serves. A farmer who knows their rights and where they stand if an elevator fails can be in a better position than those farmers who aren’t as well informed. That is the topic of today’s blog post by RFD-TV Legal Contributor Roger A. McEowen.
Financial matters in farming can be frustratingly complicated, especially when it comes to the process of filing for bankruptcy. That is the topic tackled in today’s blog post by Farm-Legal Expert Roger A. McEowen—the definition of “insolvency” for purposes of the exclusion from income of CODI.
The “farm products rule,” and the 1985 Farm Bill modification and its application – that is the topic of today’s blog post from Agri-Legal Expert Roger McEowen.
Now that Washington lawmakers have passed a 45-day stopgap, they have some breathing room to work through some hot-button topics like the high cost of the upcoming Farm Bill, which is due in large part to the funding necessary to support the Nutrition Title.
Recently, a bank in Texas got confused on the financing rules governing agricultural crops and lost its security interest as a result. Ag financing and priority rules among competing security interests—that is the topic of today’s post.
The classification of persons conducting farming operations for a farm landowner—that is the topic of today’s blog post by RFD-TV farm-legal expert Roger A. McEowen.
Farm-legal expert Roger A. McEowen discusses avoiding contractual obligations in times of pandemic.