As you may know, on December 3rd, as the result of a Texas federal court issuance of a preliminary injunction, temporarily pausing the CTA's enforcement. However, on Monday, December 23, 2024 the 5th U.S. Circuit Court of Appeals granted a stay of the district court's nationwide preliminary injunction.
What this means that the CTA can now be enforced while the government's appeal of the district court's decision proceeds and Beneficial Owner Information (BOI) Report filing requirements which previously effectively paused under the preliminary injunction are once again required to file beneficial ownership information with the Financial Crimes Enforcement Network ("FinCen").
In light of the Court of Appeals' Decision, FinCen has released guidance noting that because reporting companies may need additional time to comply with the reporting requirements of the CTA,they have extended certain reporting deadlines as follows:
- Reporting companies created or registered in the United States prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. These reporting companies otherwise would have been required to file their initial reports by January 1, 2025.
- Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have untilJanuary 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
- Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
- Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
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.
