Due to a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability for failing to do so while the order remains in force.
Here are the key points:
- Nationwide Injunctions:
- On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued in Texas Top Cop Shop v. McHenry.
- However, a separate nationwide order from a federal judge in Texas (Smith v. U.S. Department of the Treasury) remains in place, which prevents FinCEN from requiring these filings for now.
- Voluntary Submissions:
- Reporting companies may continue to voluntarily submit beneficial ownership information to FinCEN if they wish, but this is not required.
- No Liability:
- While the Smith order remains in force, reporting companies are not subject to any liability for failing to file beneficial ownership reports.
This ongoing litigation may cause further updates, so it is important to stay informed as the situation evolves. If you or your tax clients have any questions or need assistance navigating these requirements, please feel free to reach out to Wilson Tax Law Group, APLC. The firm will keep you updated as more information becomes available.
To find out more about how Wilson Tax Law Group, APLC, could help with your tax litigation and defense needs, we invite you to set up a consultation with our firm.
Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board. Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.
For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC.
Tel: (949) 397-2292 (Newport Beach Office)
Tel: (714) 463-4430 (Yorba Linda Office)
Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.
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