News

Sean Bryan Authors Article on Resumption of Enforcement of Corporate Transparency Act Enforcement

Posted on
Reading Time: 2 Minutes| 22 Views

Sean Bryan’s Article: 5th Circuit Temporarily Lifts Injunction on Corporate Transparency Act Enforcement

On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit temporarily lifted an injunction granted on December 3 by a U.S. District Court that prohibited the U.S. Treasury Department and its FinCEN unit from enforcing the requirement under the Corporate Transparency Act for filing of Beneficial Ownership Information reports.  The stay of the injunction is pending a hearing by the Circuit Court of the actual appeal, which the court order directed be expedited to be heard at the “next available oral argument panel”. 

Companies subject to the CTA that were in existence before January 1, 2024, have until December 31, 2024, to file an initial BOI report, and companies subject to the CTA that were formed on or after January 1, 2024, have 90 days (changing to 30 days beginning January 1, 2025) after the date of formation to file an initial BOI Report.  FinCEN has not yet addressed whether any relief from filing deadlines will be granted in light of the injunction, which may have resulted in companies delaying filing BOI reports until the legal matter is resolved.

Following the stay of the injunction, FinCEN granted certain extensions for filing BOI reports.

  • Companies subject to the CTA formed on or after January 1, 2025, have 30 days to file an initial BOI report. 
  • Companies subject to the CTA that were in existence before January 1, 2024, now have until January 13, 2025 (rather than January 1) to file an initial BOI report.
  • Companies subject to the CTA formed on or after September 4, 2024, with a 90-day filing deadline between December 3 and December 23 have until January 13, 2025, to file an initial BOI report.
  • Companies subject to the CTA formed on or after December 3, 2024, but on or before December 23, 2024, have 21 days added to the 90 days currently permitted to file an initial BOI report.
  • Companies subject to the CTA formed on or after December 24, 2024, but before January 1, 2025, still have 90 days to file an initial BOI report.