***LEGAL ALERT***
NATIONWIDE INJUNCTION OF ENFORCEMENT TO CORPORATE TRANSPARENCY ACT ISSUED BY FEDERAL COURT
January 1 filing deadline for Beneficial Ownership Information Reports is halted, for now.
Most US companies, including small businesses, were facing a January 1, 2025 deadline to report information about their beneficial owners to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) under the Corporate Transparency Act (CTA). On December 3, 2024, the US District Court for the Eastern District of Texas, put those reporting requirements on hold. The Court issued a nationwide preliminary injunction suspending enforcement of the CTA and its reporting requirements, for now. A copy of the federal court’s decision can be found here.
It appears that FinCEN is still accepting BOI Reports on its website and there have been no public statements or releases from the government about the injunction. However, we believe that the government will seek a stay of the injunction in the Fifth Circuit Court of Appeals and request an expedited appeal of the decision. If the temporary injunction is lifted or limited, companies would still be required to file their Initial BOI Report no later than Jan. 1, 2025.
Companies should still continue to gather the beneficial ownership information required and be prepared to file the required reports, in the event that the Appeals Court stays or limits the injunction. More information about the BOI Reporting Requirements can be found here.
Please call Ken DeMoura at 781-914-3770 or email him at kdemoura@demourasmith.com if you have questions about these reporting requirements or need assistance with compliance with the CTA.
