Fifth Circuit Court Ruling on Beneficial Ownership Information Reporting: Impact on Private Practice Healthcare Providers
Background: Beneficial Ownership Information (BOI) Reporting In recent years, there has been a growing focus on increasing transparency in corporate ownership. This includes a requirement for companies to disclose information […]
Background: Beneficial Ownership Information (BOI) Reporting
In recent years, there has been a growing focus on increasing transparency in corporate ownership. This includes a requirement for companies to disclose information about their beneficial owners, which are the individuals who ultimately own or control 25% or more of the company’s shares.
The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a rule requiring certain businesses to file reports disclosing their beneficial ownership information. This rule applies to a wide range of businesses, including some healthcare providers.
Fifth Circuit Court Ruling Lifts Injunction on BOI Reporting
On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit issued a ruling that lifted a preliminary injunction that had been blocking the deadline for companies to file BOI reports. This means that the deadline for filing these reports is now back in effect.
Impact on Healthcare Providers in Private Practice
The impact of the Fifth Circuit’s ruling on healthcare providers in private practice will depend on the specific structure of their practice.
- Sole Proprietorships and Single-Member LLCs: Generally, sole proprietorships and single-member LLCs are not required to file BOI reports. This is because the beneficial owner of the business is already a matter of public record.
- Multi-Member LLCs and Corporations: If your healthcare practice is structured as a multi-member LLC or a corporation, you may be required to file a BOI report. This will depend on whether any members or shareholders of the entity own or control 25% or more of the ownership interest.
What Healthcare Providers in Private Practice Should Do
Here are some steps that healthcare providers in private practice should take in light of the Fifth Circuit’s ruling:
- Determine if Your Practice Needs to File a BOI Report: Consult with your attorney to determine whether your specific practice structure triggers the BOI reporting requirement.
- Gather Necessary Information: If you are required to file a BOI report, you will need to gather the necessary information about your beneficial owners. This information will include their name, address, date of birth, and Social Security number.
- File Your BOI Report: Once you have gathered the necessary information, you will need to file your BOI report with FinCEN. The deadline for filing is typically within 30 days of the formation of the business or any changes to the beneficial ownership structure. Deadline is January 1, 2025
Conclusion
The Fifth Circuit’s ruling is an important development for healthcare providers in private practice. It is important to understand whether your practice is required to file a BOI report and to take the necessary steps to comply with the reporting requirements. By doing so, you can help to ensure that your practice is operating in accordance with the law.
Additional Resources
- Article re BOI basics & deadline: Unveiling the Corporation Transparency Act: A Must-Know Guide for Private Practice Clinicians!
- Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN): https://fincen.gov/
- FinCEN’s Beneficial Ownership Information Reporting Rule: https://fincen.gov/beneficial-ownership-information-reporting
Written by AI & Reviewed by Clinical Psychologist: Yoendry Torres, Psy.D.
Disclaimer: Please note that some blog posts may contain affiliate links, and Sana Network will earn a commission if you purchase through those links at no additional cost to you. We use all of the products listed and recommend them because they are companies or products that I have found helpful and trustworthy. Our website is supported by our users. This post is for informational purposes only, and Sana Network does not guarantee the outcomes discussed. This post does not constitute legal advice and you should seek out a qualified business consultant or an attorney for advice tailored to your specific situation and for specific legal guidance.
