The United States Court of Appeals for the Fifth Circuit has
reinstated enforcement of the Corporate Transparency Act (CTA).
The original compliance deadlines are back in effect
following the court's decision to overturn a nationwide
preliminary injunction.
ACTION:
- If you have not filed your CTA Beneficial Owner Report and your entity is not exempt, you should make your filing by January 13, 2025 to avoid imposition of a $591/day penalty.
- You can file online at fincen.gov/boi.
What Is the Corporate Transparency Act?
The CTA, effective January 1, 2024, aims to combat financial crimes
such as money laundering, tax evasion, and terrorism by requiring
certain business entities to disclose beneficial ownership
information to the Financial Crimes Enforcement Network
(FinCEN).
For additional background see Corporate Transparency Act Becomes
Operational.
Key Affected Entities:
- Domestic and foreign LLCs, corporations, and limited partnerships registered in the U.S.
- Smaller, non-publicly traded entities.
Deadlines for Filing Beneficial Ownership
Information:
The Fifth Circuit's decision reinstates the timeline for
compliance with the CTA's beneficial ownership reporting
requirements.
- Entities Formed Before January 1, 2024: File by January 13, 2025.
- Entities Formed During 2024: File within 90 days of formation.
- Entities Formed On or After January 1, 2025: File within 30 days of formation.
- Updates: File updates within 30 days of any changes to submitted information.
What Should Reporting Companies Do Now?
Take Action on Compliance:
- Ensure your company is ready to file the required reports with FinCEN by the applicable deadlines.
- Establish procedures to track and report changes within 30 days.
Monitor Legal Updates:
- Stay informed on further litigation and FinCEN guidance.
- FinCEN has not yet issued updated guidance in light of the Fifth Circuit's ruling
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
