All Systems Go: The CTA is Back On (Until Further Notice)
On February 17, 2025, the U.S. District Court for the Eastern District of Texas issued an order lifting the nationwide preliminary injunction issued in Smith, et al. v. U.S. Department of the Treasury. Consequently, the beneficial ownership information (BOI) reporting requirements under the CTA are back in effect.
In response to the order, the Financial Crimes Enforcement Network (FinCEN) is extending the deadline to comply with the BOI reporting requirements by thirty (30) days to March 21, 2025, for most companies. Reporting companies that were granted a reporting deadline later than March 21, 2025 (for example, due to disaster relief) may file their initial BOI report by such deadline.
Companies formed after February 19, 2025 will have thirty (30) days to file.
FinCEN has stated that it intends to initiate a process this year to revise the BOI reporting requirements to reduce the compliance burden for lower-risk entities, including many U.S. small businesses. FinCEN has also stated that during the period ending March 21, 2025, it will assess its options to further modify deadlines while prioritizing reporting for such entities that pose the "most significant national security risks," signaling further potential changes to the BOI reporting deadline.
While the nationwide injunction has been lifted, the Smith case and other similar cases continue to wind their way through the legal system. As such, we can expect further judicial, legislative and administrative developments in the months ahead.
These head-spinning developments notwithstanding, reporting companies are (for now) required to file their initial BOI report by March 21, 2025.
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