UPDATE: On December 23, 2024, a three-judge panel for the Fifth Circuit Court of Appeals stayed an injunction on the Corporate Transparency Act (CTA) issued by the U.S. District Court for the Eastern District of Texas in Texas Top Cop Shop, Inc. v. Garland. This means that the CTA is now back in effect and reporting companies will face penalties for noncompliance.
In an alert issued in the wake of the ruling, The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has extended certain deadlines relating to the CTA, recognizing that “reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect.” The deadline changes include the following:
- Reporting companies created or registered before Jan. 1, 2024, have until Jan. 13, 2025, to file initial beneficial ownership information (BOI) reports with FinCEN.
- Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
- Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
- Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
In its order, the Fifth Circuit said that “the government has made a strong showing that it is likely to succeed on the merits in defending CTA's constitutionality.” It is unclear whether the groups fighting against the regulation will ask the 5th Circuit for further review or bring the challenge to the Supreme Court.
You can find out more about the CTA’s requirements and file your entity report by visiting the FinCEN website.