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IMPORTANT UDPATE: Court Injunction Blocks BOI Reporting Requirement for Business Entities

By MNR News posted 25 days ago

  
We want to inform you about a critical legal development related to the Beneficial Ownership Information (BOI) Reporting requirement that had previously applied to many small business entities, including real estate brokerages.

On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated a nationwide injunction, halting further implementation and enforcement of the Corporate Transparency Act (CTA).

This decision also prevents the Financial Crimes Enforcement Network (FinCEN) from enforcing the BOI Reporting requirement at this time.

"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 at this time." — Financial Crimes Enforcement Network

What does this mean?
Small business entities are not currently obligated to file BOI reports, but should remain prepared to file if required in the future. The injunction will remain effective while the lawsuit is ongoing or until further action by the court. BOI reports can still be filed voluntarily. We encourage you to consult your legal or financial advisor to ensure ongoing compliance.

For additional information regarding the state of the law and current litigation, please visit www.fincen.gov/boi. This is the official government website with all relevant information regarding the Beneficial Ownership Information Reporting Rule.  

Minnesota Realtors® will continue to montior this process and provide updates as necessary.

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