Businesses again required to file beneficial ownership information reports
The US Supreme Court weighed-in on the see-saw battle over enforcement of the Corporate Transparency Act yesterday, January 23, 2025. The Court lifted the nationwide injunction prohibiting the US Treasury Department from requiring businesses and business owners to file Beneficial Ownership Information Reports under the Corporate Transparency Act. The brief order can be read here.
As we previously reported, 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. After the US Treasure Department appealed the ruling to the Fifth Circuit Court of Appeals, the injunction was lifted and then reinstated by a different panel of judges. The US Supreme Court has now lifted the injunction pending a final ruling from the Fifth Circuit on the constitutionality of the CTA.
FinCEN, the agency charged with enforcement of the CTA, has continued to accept voluntary reports on its website and previously extended the reporting deadlines given the back and forth rulings in the case. There have been no public statements or releases from the government about the latest ruling but it is expected that FinCEN will issue new guidance and deadlines shortly. Companies should continue to gather beneficial ownership information and be prepared to file the required reports in the coming weeks.
For further information or assistance with preparation and filing your BOI report, reach out to Ken DeMoura at kdemoura@demourasmith.com.
