
On December 23, 2024, a significant legal development occurred when the Fifth Circuit Court of Appeals allowed the Department of Justice to lift an injunction previously issued by the U.S. District Court for the Eastern District of Texas.
This ruling arose from the case entitled Texas Top Cop Shop, Inc., et al. v. Garland, et al., and it marks the return of mandatory reporting for companies concerning beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
Reporting Deadlines Adjusted
Originally, many companies were expected to meet the reporting deadline of January 1, 2025.
However, due to this recent ruling, FinCEN has adjusted the deadlines for several categories of entities:
- Companies that were incorporated or registered before January 1, 2024, now find their deadline extended to January 13, 2025, for their initial beneficial ownership reports.
- Those businesses that were created or registered on or after September 4, 2024, will also benefit from this extension, provided their original deadlines fell between December 3, 2024, and December 23, 2024—they too now have until January 13, 2025.
- New companies that have been established in the U.S. from December 3, 2024, to December 23, 2024, are granted an additional 21 days to file their beneficial ownership reports.
Special Circumstances for Filing
FinCEN has also outlined specific circumstances that could influence filing timelines:
- Entities seeking relief due to disasters may qualify for extra time beyond the January 13 deadline.
These companies should adhere to whichever deadline is later.
- Additionally, in the case titled “Notice Regarding National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.),” individuals like Isaac Winkles and related reporting companies are currently exempt from submitting beneficial ownership reports to FinCEN until further notice.
Future Filings and Compliance
It’s crucial for companies formed on or after January 1, 2025, to note that their filing deadline will remain 30 days from the date they receive actual or public notice of their registration or creation.
As the landscape of corporate reporting shifts once again, all affected entities should stay informed about their obligations and compliance timelines.
Source: Natlawreview.com