The Beneficial Ownership Information rule is back
The Beneficial Ownership Information (BOI) reporting rule that requires businesses, upon pain of penalty, to file certain information with the the Financial Crimes Enforcement Network. (FinCEN) is back in action.
The National Lumber and Building Material Dealers Association on Thursday released the following update:
Today, the U.S. Supreme Court has issued a ruling which lifts a Dec. 3rd nationwide injunction and reinstates the Corporate Transparency Act (CTA). Small businesses will now look toward FinCEN for guidance now that businesses are once again required to submit beneficial ownership information (BOI) reports with FinCEN. Since the January 1st deadline has passed, it is anticipated FinCEN will offer an administrative delay to allow businesses to prepare their BOI reports.
Justice Jackson issued a dissenting opinion arguing the Government failed to provide sufficient reasoning for emergency relief. “However likely the Government’s success on the merits may be, in my view, emergency relief is not appropriate because the applicant has failed to demonstrate sufficient exigency to justify our intervention,” stated Jackson in her dissent. While this case will continue in the Fifth Circuit Court of Appeals, the SCOTUS ruling means that reporting requirements will not be halted as the litigation continues in the lower court.
As NLBMDA shared last week, Rep. Warren Davidson has reintroduced legislation which would permanently repeal the Corporate Transparency Act. Now that SCOTUS has reinstated the reporting requirement, it is crucial that NLBMDA members contact their Representative and Senators to express the LBM industries’ support of the legislation which would protect small businesses from the burdensome reporting requirements included in the CTA.
[For more commentary on the BOI rule, click here.]
NLBMDA will continue to support litigation efforts challenging the constitutionality of the CTA. As a reminder, NLBMDA will be hosting its Spring Meeting & Legislative Conference on April 1-2nd. The meetings will provide a great opportunity for LBM dealers to meet with lawmakers directly to share the importance of passing legislation which repeals the CTA.
NLBMDA will continue to update its members on the latest developments, including when FinCEN updates its guidance to small businesses. . For questions, contact Matthew Delaney, NLBMDA’s Government Affairs Coordinator at mdelaney@dealer.org.
Share your thoughts on the Corporate Transparency Act with HBSDealer. Write to us at news@HBSDealer.com.