Nationwide Injunction Halts BOI Reporting
On December 3, the U.S. District Court for the Eastern District of Texas halted the implementation of the Corporate Transparency Act (CTA) Beneficial Ownership Information (BOI) reporting requirements.
The injunction was issued in Texas Top Cop Shop, Inc. v. Garland on behalf of a Texas firearms and tactical gear retailer, Texas Top Cop Shop Inc., among other co-plaintiff businesses and the Libertarian Party of Mississippi. The lawsuit alleges that the CTA falls outside of Congress's powers to regulate interstate and foreign commerce due to the regulation of incorporated entities, regardless of whether they engage in commercial activity. However, the court ruled that while Congress can regulate corporate activity, the CTA oversteps constitutional bounds. The judge stated that the Commerce Clause cannot be used to mandate such disclosures solely for law enforcement purposes, as the CTA does not directly regulate commerce. The Department of Justice filed a formal notice of appeal on December 5. The AICPA said, “Although FinCEN is barred from enforcing BOI filing requirements while the case is pending, the deadlines are technically still in effect. Considering this, best practices dictate that, at a minimum, those assisting clients with BOI report filings continue to gather the required information from clients who have engaged CPAs for this service. If the injunction is lifted, prepare to file the BOI report. While it is unlikely that the injunction will be lifted prior to the final outcome of the proceedings, we advise being prepared in the event that there is a reversal.” AICPA is communicating with FinCEN and U.S. Treasury officials and will relay updates as guidance becomes available. As of our 12/6/24 Newsletter deadline, FinCen had not issued a statement. Matters can change daily. AICPA updates will be posted on their website. MSCPA will continue to keep members updated as things unfold. 

AICPA & State Societies Urge Delay in BOI Reporting
On December 4, the Mississippi Society of CPAs joined AICPA and other state societies on a letter to FinCEN and U.S. Treasury asking that they, within their power, delay BOI reporting deadline by one year to January 1, 2026, citing the injunction and concerns that 80% of small businesses have not filed. A letter was also sent in November to House Financial Services Committee and Senate Banking Committee leaders expressing concerns with the upcoming January 1, 2025 deadline for reporting. That letter also asked for the rule to be suspended for at least a year so the small business community can become better informed of their filing requirement.

MSCPA and FincenFetch Partner to Offer BOI Reporting Education and Resources to Members
The Mississippi Society of CPAs has partnered with FincenFetch to provide our members with courses and resources on the impact of the 2024 Corporate Transparency Act (CTA) on their clients and firms. This partnership, and others between FincenFetch and 30 additional CPA societies across the United States, addresses the importance of staying compliant and how members can incorporate FinCEN filings into their service portfolios. “We are excited about our new partnership with FincenFetch,” Karen Moody, MSCPA President/CEO, said. “This partnership will provide our members with the necessary resources and support they need to assist their small business clients with the required BOI reporting.”
Over 180 members attended the FREE FinCentFetch webinar on November 20th. MSCPA shared the webinar recording with our membership. Only those who registered and attended the webinar can claim the 1-hour CPE credit. As a member of the MSCPA, you receive a 20% discount on their FinCEN filing platforms for firms. FincenFetch enables you to eFile reports in minutes, collect client data, manage any number of reports, provide clients with secure BOI portals, and automate mandatory processes of BOI reporting for firms and clients. Please use the following link to our MSCPA landing page with FincenFetch for more information, guides, free demo, and to also watch a 30-minute webinar on BOI current updates.

Link to MSCPA FinCenFetch information: https://www.fincenfetch.com/partners/mississippi-cpa/

About FincenFetch
FincenFetch is a leading Corporate Transparency Act filing platform for CPAs and attorneys. The company offers SOC2-certified filing solutions trusted by hundreds of firms, including many of the top 100. FincenFetch features integrate seamlessly into C PA processes, allowing accountants to offer their clients secure, automated, and easy BOI reporting.