12/27/2024
𝐓𝐡𝐞 𝐔𝐧𝐛𝐞𝐥𝐢𝐞𝐯𝐚𝐛𝐥𝐞 𝐔𝐩𝐝𝐚𝐭𝐞 - 𝐓𝐡𝐞 𝐁𝐞𝐧𝐞𝐟𝐢𝐜𝐢𝐚𝐥 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐒𝐚𝐠𝐚!
Earlier today the Fifth Circuit Court of Appeals overturned the Fifth Circuit Court of Appeals. What does this mean? It means that currently you are not required to file a Beneficial Ownership Information (BOI) Report with the Financial Crimes and Enforcement Network (FinCEN).
Yep, you read that right. The court overruled itself by vacating its own judgment. Trust me, I wouldn't even try to make this kind of stuff up. No one would believe me. I didn't believe this on the 23rd when I was drafting the prior urgent update, and I still don't believe this now as I write this urgent update.
If you would like to read the word salad that is the Court overruling itself, we can oblige, just click the link below:
https://www.ca5.uscourts.gov/opinions/unpub/24/24-40792..pdf?fbclid=IwY2xjawHbAzxleHRuA2FlbQIxMAABHZoZ2GzSh3rlLxSF73T2q8jhlIfQwUMeNXdGq2BssKyrN2NEG1xjIszApQ_aem_45TtMbnhRTPxjK1dsl8lHA
Apparently, for those of us who are not lawyers, the Fifth Circuit Court has a Motions Panel and a Merits Panel and the case now sits with the Merits Panel who has overruled the Motions Panel, at least to the extent that the Motions Panel suspended the prior Texas Court's injunction.
𝐖𝐡𝐚𝐭 𝐬𝐡𝐨𝐮𝐥𝐝 𝐲𝐨𝐮 𝐝𝐨 (𝐧𝐨𝐰, 𝐚𝐭 𝐥𝐞𝐚𝐬𝐭 𝐟𝐨𝐫 𝐭𝐨𝐧𝐢𝐠𝐡𝐭, 𝐛𝐞𝐟𝐨𝐫𝐞 𝐭𝐡𝐢𝐬 𝐜𝐡𝐚𝐧𝐠𝐞𝐬 𝐰𝐡𝐢𝐥𝐞 𝐰𝐞 𝐬𝐥𝐞𝐞𝐩, 𝐥𝐨𝐥):
I am going with waiting. I shall await a disposition of all of this insanity and by that, I mean, for any entities I own that have not previously filed, I will wait until the courts have finished going one way, and then the other way, and then overruling themselves. If FinCEN wants to penalize me $591 per day for willful failure to file, I guess we will have that fight about whether or not it is willful failure to file in a situation that is so heavily litigated that a Federal Court of Appeals overruled itself. I am not suggesting you take this stance. You must decide that for yourself.
Of course, there is the other alternative which is talk to your attorney if you have an attorney you work with.
𝐊𝐞𝐢𝐭𝐡'𝐬 𝐒𝐨𝐚𝐩𝐛𝐨𝐱 𝐑𝐚𝐧𝐭
The dumbest part about all of this is that we all know this will not work to serve the intended purpose. The purpose of this part of the Corporate Transparency Act is to find illegal money laundering and stop it. I know this may come as a shocking surprise to some, but the drug cartel in Colombia that is using LLCs in the United States to conduct money laundering is not reading my broadcast emails and deciding whether or not they will file their BOI. They had already decided. They are not filing. Go ahead and fine them $591 per day, once you figure out who they are and then just try to collect as they move throughout the country forming new entities and abandoning the ones you just found. The BOI report is a great idea for pretend law enforcement. It is an incredibly stupid idea if you actually want to stop money laundering. Those are my 2 cents. Your mileage may vary.
𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧
We have no idea as to how this appeal will ultimately end at the Fifth Circuit. However, we feel confident in asserting that this will go on to the Supreme Court, unless the incoming administration ends this madness, which is also quite possible. Both sides seem persistent with their appeals, so however the appeal at the Fifth Circuit turns out, one side will not be happy and would likely appeal again. A body in motion, remains in motion, until acted upon by some outside force.
Of course, I am not an attorney, nor do I play one on TV. But as a trusted business advisor, I seek to keep my clients and friends informed on business, accounting, and tax matters. If you have any questions about all of this insanity, just let us know. We may be running out of good and useful advice as we grow dizzy from the speed of this Merry Go Round, but if nothing else, we are happy to commiserate with you.
We hope this information, as unbelievable as it may seem, is in some way useful to you.
We appreciate the opportunity to serve you and your business.
