A recent federal court ruling has declared the Beneficial Ownership Information (BOI) reporting requirements unconstitutional, raising many questions for women entrepreneurs and small business owners.
These reporting rules, implemented under the Corporate Transparency Act (CTA), were meant to increase transparency in business ownership, but now their future is uncertain.
If we are honest, it was primarily meant for FINCEN to be all up in your business to connect the dots of where and who the money was being loaned.
Let’s break down the top six questions you may have about this decision and what it means for your woman-owned business.
1. What is BOI reporting, and why was it deemed unconstitutional?
The BOI reporting requirements were designed to combat financial crimes like money laundering by requiring certain businesses to disclose their ownership details to the Financial Crimes Enforcement Network (FinCEN).
However, a federal court ruled these requirements unconstitutional, citing concerns about government overreach and potential violations of privacy rights. The court also noted that the burden placed on small businesses outweighed the potential benefits.
2. Do I still need to file my BOI report if I haven’t yet?
No, as of now, businesses are no longer required to submit BOI reports because the court has temporarily blocked enforcement of the rules.
💡 What to Do Now:
If you haven’t filed yet, you can pause for the time being. However, stay informed about ongoing legal developments, as the ruling could be appealed.
3. What happens to the reports I already filed?
If you’ve already submitted your BOI report, it remains valid and secure. The ruling halts enforcement of future filings but doesn’t invalidate past submissions.
What we are primarily interested in is how will the already submitted reports be handled? Will the information collected be deemed unconstitutional?
Want the full CPA considerations in this article? Subscribe today for this answer for only $7.99.