December 30, 2024
The Corporate Transparency Act (CTA) is once again on hold, leaving businesses in limbo over beneficial ownership information (BOI) reporting requirements. A recent back-and-forth in the courts has caused significant confusion, making it critical for businesses to understand where things stand. The most recent alert on this matter published by the Financial Crimes Enforcement Network (FinCEN) can be found here.
In a whirlwind of decisions from the Fifth Circuit Court of Appeals, enforcement of the CTA has been suspended once more:
December 23, 2024: The court’s motions panel lifted a nationwide injunction, briefly reinstating the CTA’s BOI reporting requirements.
December 26, 2024: A merits panel reversed that decision, reinstating the injunction and halting enforcement of the CTA.
As it stands, businesses are not required to file BOI reports with FinCEN. However, FinCEN has stated that voluntary submissions remain an option for businesses that wish to proceed.
In light of the ongoing legal uncertainty, businesses are not currently required to submit a BOI report. However, proactively gathering and organizing your beneficial ownership data now can save time and ensure you’re prepared if the injunction is lifted. Meanwhile, FinCEN is accepting voluntary submissions for those who wish to file.
The Fifth Circuit is set to hear arguments on the government’s appeal on March 25, 2025, with additional legal challenges to the CTA progressing in other circuits. Staying informed is crucial, as future developments could once again change the enforcement status.
Initially set for January 1, 2025, the deadline for most BOI filings was extended to January 13, 2025, before the injunction once again suspended enforcement. While this injunction remains in place, businesses will not face liability for failing to file.