Effective January 1, 2024, the Corporate Transparency Act (CTA) established a new filing requirement for small business, including S-Corporations and LLCs. Qualifying businesses must file a Beneficial Owner Information (BOI) report with Financial Crimes Enforcement network (FinCEN), a bureau under the Department of Treasury. According to the bureau’s website, the expectation is that nearly all small businesses will meet the criteria and must file (Beneficial Ownership Information Reporting FAQS).
We posted easy to follow instructions at: Take 10 Minutes to Comply with the New CTA Rules With These 12 Easy Steps – TheMDTAXESNetwork
In just the last month, the courts have caused the BOIR filing rules to be put on hold on 12/3/24, then reinstated on 12/23/24, and then put on hold again three days later on 12/26/24. If you filed the BOIR for your PCs and LLCs, then this craziness won’t affect you at all. If you haven’t filed yet, stay tuned.
According to McLane Middleton’s Corporate Transparency Act Resource Center, here are the updates:
On December 26, 2024, the United States Fifth Circuit Court of Appeals reversed a December 23, 2024 court decision that lifted the injunction on enforcement of the Corporate Transparency Act. The result of this reversal is that reporting companies required by the CTA to submit a Beneficial Ownership Information Report to the U.S. Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, are no longer required to do so. All filing deadlines established shortly after the injunction was lifted, including the January 13, 2025 deadline for filings by reporting companies formed before 2024, are no longer in effect.
On December 23, 2024, the United States Fifth Circuit Court of Appeals lifted a lower court’s injunction that temporarily prohibited the enforcement of the Corporate Transparency Act (“CTA”), the federal law that requires most small businesses and holding companies (“Reporting Companies”) to make a filing with the Financial Crimes Enforcement Network (“FinCEN”), the federal agency administering the CTA. As a result of this most recent order, CTA filings are again required to be made with FinCEN. Information regarding the filing requirement and the limited exemptions from filing available to some entities can be found at the FinCEN website (www.FinCEN.gov). To read the rest of the client notice, click here.
On December 3, 2024, the United Stated District Court for the Eastern District of Texas issued an injunction temporarily prohibiting the federal government from enforcing the Corporate Transparency Act nationwide. Pending a final ruling, companies subject to the CTA, known as “reporting companies,” are not required to comply with the CTA’s reporting requirements or filing deadlines. To read the rest of the client notice, click here.
January 1, 2024 – The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) began accepting beneficial ownership information reports. The bipartisan Corporate Transparency Act, enacted in 2021 to curb illicit finance, requires many companies doing business in the United States to report information about the individuals who ultimately own or control them. To read more, click here.