December 13, 2024
The following is information regarding requirements under the Corporate Transparency Act (CTA) for many business entities to file a Beneficial Ownership Information (BOI) Report with The Financial Crimes Enforcement Network (FinCEN). We wanted to bring to your attention an important development regarding the BOI filing requirements that may affect your business. Recently, a federal district court issued a nationwide injunction halting the enforcement of the Corporate Transparency Act (CTA) and the BOI filing requirements, citing constitutional concerns.
As a result of this injunction, businesses currently are no longer required to comply with the January 1, 2025 filing deadline for BOI reporting. This ruling has temporarily suspended the BOI filing rules, providing some relief for businesses that were preparing to meet this deadline.
However, it is important to keep in mind that there will likely be further legal developments, including potential appeals, which could change the current situation. If the injunction is lifted or a ruling is made in favor of the government, it is possible that the original filing deadline may still apply, leaving businesses with little time to comply.
FinCEN has responded that as long as the preliminary injunction remains in effect that 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. FinCEN also indicated that reporting companies may continue to voluntarily submit BOI reports.
Given this uncertainty, we recommend taking a conservative approach and preparing to file should there be a reversal of the injunction. This proactive step will help ensure that your business remains compliant with any future rulings.
We understand that this situation may be confusing and challenging, and we are here to assist you. If you have any questions or need further guidance on how to proceed, please do not hesitate to reach out to us. Our team is committed to keeping you informed and providing the support you need during this time. We will continue to monitor the situation closely and provide updates as they become available.