The Corporate Transparency Act (CTA) requires most companies to file a Beneficial Ownership Information (BOI) report with FinCEN. The filing deadline for existing companies is January 1, 2025, and newly formed companies in 2024 must file within 90 days.
However, on December 3, 2024, a federal court in Texas issued a nationwide injunction, temporarily halting the enforcement of the CTA. The court ruled that the law is likely unconstitutional.
What Does This Mean for Your Business?
- No Immediate Filing Requirement: You are not required to submit the BOI report (or amendments to previously made BOI reports) and will not face penalties for failing to do so while the injunction remains in effect.
- Appeal Uncertainty: The government is expected to appeal this ruling, but it remains uncertain whether the appeal will be successful. If the filing requirements are reinstated, businesses could face last-minute deadlines and should be prepared to comply by collecting the necessary information.
- Voluntary Filing: Companies can still choose to file voluntarily now, which may help avoid a rush if the injunction is lifted and deadlines are reinstated.
This ruling is temporary, and the situation could change depending on the outcome of the appeal. Please contact Gutwein Law with any questions.
