UPDATE: DECEMBER 24, 2024
On Monday December 23, 2024, a federal Court of Appeals confirmed that reporting companies* ARE required to file beneficial ownership information (BOI) with FinCen. The Department of the Treasury has extended the reporting deadlines. Click HERE to read the full alert and new due dates issued by the Department of Treasury.
*Plaintiffs in National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.) are not currently required to report their beneficial ownership information to FinCEN at this time.
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ORIGINAL BLOG POST DATED DECEMBER 16, 2024
On Tuesday, December 3, 2024, a federal district court in Texas issued an order granting a nationwide, preliminary injunction that: (1) enjoins enforcement of the Corporate Transparency Act (CTA) and regulations implementing its beneficial ownership information (BOI) reporting requirements, and (2) stays all deadlines to comply with the CTA’s reporting requirements, including the January 1, 2025 deadline for reporting companies to submit their initial BOI report. The Department of Justice, on behalf of the Department of the Treasury, filed an appeal of the district court’s decision on December 5, 2024.
The Financial Crimes Enforcement Network (FinCEN) has responded that as long as the preliminary injunction remains in effect:
- reporting companies are not required to report BOI to FinCEN; and
reporting companies will not be subject to liability for failing to report their BOI. - reporting companies will not be subject to liability for failing to report their BOI.
FinCEN also indicated that reporting companies may continue to voluntarily submit BOI reports.
If you choose not to file at this time, you will need to monitor this case closely as it progresses through the appeals process.