There has been significant confusion regarding what happened during December 2024 regarding the Beneficial Ownership Information (BOI) reporting requirements of the Corporate Transparency Act’s (CTA).
Here is a breakdown of recent actions regarding the BOI reporting requirements:
- December 3, 2024: The U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction, temporarily halting enforcement of the CTA’s BOI reporting requirements.
- December 23, 2024: The U.S. Court of Appeals for the Fifth Circuit stayed the preliminary injunction, reinstating the CTA’s reporting obligations. In response, the Financial Crimes Enforcement Network (FinCEN) extended the reporting deadline to January 13, 2025, for companies created or registered before January 1, 2024.
- December 26, 2024: A different panel of the Fifth Circuit vacated the stay, reinstating the preliminary injunction. Consequently, reporting companies are not currently required to file BOI reports with FinCEN.
The final court ruling on this matter is anticipated in the coming months. Given the ongoing legal proceedings, experts are recommending that all companies continue to gather the necessary information to file BOI reports, should the requirement be reinstated. While filing is currently voluntary, proactively preparing will facilitate compliance if mandatory reporting resumes.
Please contact us for more information.
