FOR IMMEDIATE RELEASE
Date: December 30, 2024
Important Update: Corporate Transparency Act (CTA) Filing Requirements Temporarily Halted
Important update for businesses subject to the Corporate Transparency Act (CTA). Following a recent court ruling, reporting companies are not currently required to file beneficial ownership information (BOI) with the Financial Crimes Enforcement Network (FinCEN).
Key Update
As of December 26, 2024, a federal court injunction is in effect, meaning:
- Mandatory Reporting Suspended: Reporting companies are not obligated to file beneficial ownership information reports (BOIR) at this time.
- No Penalties: Companies will not face liability for failing to submit reports during the injunction.
- Voluntary Filings Allowed: Companies may still voluntarily submit beneficial ownership information, though it is not required.
This development stems from the ongoing litigation in Texas Top Cop Shop, Inc. v. Garland, where a U.S. District Court issued a nationwide injunction halting enforcement of the CTA. While a stay of this injunction was temporarily granted, the U.S. Court of Appeals for the Fifth Circuit vacated that stay on December 26, 2024, reinstating the injunction.
Background on the Corporate Transparency Act
The CTA was enacted to combat financial crimes, such as money laundering, terrorist financing, and tax evasion, by requiring certain businesses to disclose their beneficial ownership information. Legal challenges have questioned the constitutionality of the CTA, leading to mixed decisions across federal courts.
The Department of Justice, representing the Department of the Treasury, has appealed the injunction and is seeking to reinstate the reporting requirements.
What Businesses Can Do (As of December 30, 2024)
- No Immediate Filing Required: Businesses subject to the CTA are not obligated to file reports while the injunction is in effect.
- Consider Voluntary Compliance: Voluntary submissions remain an option for companies that wish to demonstrate proactive compliance.
- Stay Prepared: Businesses should ensure their beneficial ownership information is accurate and ready for submission should the requirement be reinstated.
Devlin Law Firm recommends assessing your business needs and consulting with legal counsel to decide if voluntary filing is the right step for you. For more information, visit FinCEN’s website or contact Robyn T. Williams at Devlin Law Firm.
Next Steps
Devlin Law Firm is closely monitoring these legal developments and advising clients on how to navigate this temporary suspension.
Contact Information
For further guidance or inquiries, please contact:
Devlin Law Firm
Robyn T. Williams
(718) 360-5914
[email protected]
DevlinLawFirm.com
We will continue to provide updates on this evolving situation as they become available.
