This email was sent on 3/4/2024 to all business clients of Fox Peterson
I hope this email finds you well. I am reaching out to provide you with an important update that could impact your business operations related to the Corporate Transparency Act.
On Friday, March 1, 2024, the US District Court for the District of Alabama made a significant ruling, declaring the Corporate Transparency Act unconstitutional. This decision has immediate implications for small businesses across the country.
As a result of this ruling, all requirements and filings related to the Beneficial Ownership Information (BOI) mandated by the Corporate Transparency Act are currently put on hold. This development means that, for the time being, businesses are not required to comply with the previously established BOI submission protocols.
It is important to note, however, that this ruling is likely to be appealed. There is a possibility that the case will progress to the Supreme Court, which could lead to further changes or reinstatements of the Act’s requirements. Given the fluid nature of this situation, we recommend staying prepared to adapt to new legal requirements on short notice.
We sent our clients an email on January 25, 2024 about what the Corporate Transparency Act is and the related BOI filings that are required. We have attached this letter for your reference. At that time, we recommended not filing the BOI reports. We still recommend not filing BOI reports at this time.
What This Means for Your Business:
- Immediate Suspension of BOI Filings: You are not required to submit any Beneficial Ownership Information until further notice. If you were in the process of preparing your filings, you can pause these efforts.
- Monitoring Legal Developments: Our team will closely monitor the legal proceedings related to this ruling and will provide you with updates as they become available. It’s crucial to stay informed about potential changes that could affect your compliance obligations.
- Voluntary Filings: While businesses are still allowed to voluntarily submit their Beneficial Ownership Information, we do not recommend proceeding with voluntary filings at this time. Given the current legal uncertainty and the potential for the law to be reinstated or altered upon appeal, it may be prudent to wait for a clearer legal directive.
Be Wary of Scams: In light of recent events, we urge you to be especially vigilant about potential scams related to BOI filings. One of our clients received the attached fraudulent request, allegedly from the “US Business Regulations Department,” asking for a fee to be paid for BOI filings. Please be aware that BOI filings are exclusively processed through the US Treasury’s website; there is no option to submit these documents by mail, and the Treasury will never request paper filings or a filing fee. Such communications are likely to be scams. If you receive any suspicious requests or are unsure about the legitimacy of any communication related to BOI filings, please reach out to us immediately. Our priority is to keep your business safe and informed.
We understand that changes in legislation and compliance requirements can be challenging to navigate. Please rest assured that we are here to support you every step of the way. Should you have any immediate concerns or questions regarding this ruling and its impact on your business, do not hesitate to reach out. Our team is committed to providing you with the most current information and guidance to ensure your business remains compliant and well-prepared for future developments.
Thank you for your attention to this matter. We appreciate the trust you place in us as your tax advisors and are here to assist with any of your business needs.
Sincerely,
Fox Peterson Team
Phone: (480) 898-7640 | Fax: (480) 898-7315
705 N. Lindsay Road, Mesa, AZ 85213
