The Corporate Transparency Act (CTA) is back in force following a recent court decision, and businesses must now comply with its reporting requirements. The U.S. Court of Appeals for the Fifth Circuit has lifted a previous injunction that had temporarily blocked the enforcement of the CTA's beneficial ownership information (BOI) reporting mandates.
In response, the Financial Crimes Enforcement Network (FinCEN) has updated the reporting deadlines:
Existing Companies: Entities formed or registered on or before December 31, 2023, must file their initial BOI reports by January 13, 2025.
New Companies:
Companies formed or registered between January 1, 2024, and December 31, 2024, are generally required to submit BOI reports within 90 days of receiving notice of their creation or registration.
For those formed or registered on or after September 4, 2024, with initial filing deadlines between December 3 and December 23, 2024, the deadline has been extended to January 13, 2025.
Companies formed or registered between December 3 and December 23, 2024, now have an additional 21 days from their original filing deadlines to submit their BOI reports.
Future Companies: Entities created or registered on or after January 1, 2025, must file their BOI reports within 30 days of receiving notice of their creation or registration.
These adjustments aim to provide businesses with adequate time to comply with the CTA's requirements. It's important to note that while the Fifth Circuit's decision reinstates the reporting obligations, the court has not yet made a final determination on the constitutionality of the CTA. Further legal developments are anticipated, and businesses should stay informed about potential changes.
In the meantime, companies should assess whether they fall under the CTA's reporting requirements and ensure timely submission of their BOI reports to FinCEN by the applicable deadlines. Non-compliance can result in significant penalties, including fines and imprisonment.
For more detailed information on the CTA and guidance on compliance, businesses can refer to resources provided by legal experts and FinCEN's official communications.