A US District Court Judge in Alabama issued a summary judgment on March 1, 2024, finding the new-for-2024 Beneficial Owner Information (BOI) filing requirement unconstitutional on three levels. The judge’s ruling was a finding for the plaintiff in the case, the National Small Business Association, a group that claims 60,000 plus member businesses. While the ruling only applies to a vanishingly small number of businesses in the US (out of an estimated 30 million that the Treasury Department maintains the BOI requirement applies to) and Treasury intends to appeal the ruling, many expect the issue ultimately (and quickly?) to make its way to the US Supreme Court, where a ruling would determine for all potentially affected businesses whether or not the new filing will actually be required going forward. Businesses in existence prior to January 1, 2024 have until the end of the year to submit their BOI filing, so there is time to wait and see what happens with the court case. Watch this space for updates.
Tom Porter, CPA