
On December 23, 2024, a panel from the Fifth Circuit took decisive action by issuing a temporary stay on a nationwide preliminary injunction that had been set by a Texas district court concerning the Corporate Transparency Act (CTA).
This ruling effectively reinstates the CTA along with its related regulations while the appeal unfolds.
As a result, companies established before January 1, 2024, are still required to report their beneficial ownership information (BOI) by the deadline of January 1, 2025.
Filing Deadline Extension
In response to this ruling, the Financial Crimes Enforcement Network (FinCEN) has extended the filing deadline for BOI reports for companies created prior to 2024.
These businesses now have an additional grace period, with the new deadline set for January 13, 2025.
This extension may come as a relief to many existing reporting entities that are dealing with possible complications during the busy holiday season.
Clarified Filing Timelines
FinCEN has also clarified the filing timelines for businesses formed after September 4, 2024.
Key takeaways include:
- If a reporting entity was established or registered between September 4, 2024, and December 23, 2024, and was supposed to submit its initial BOI report between December 3 and December 23, 2024, that entity now has until January 13, 2025, to file.
- For those companies that come into existence in the U.S. from December 3, 2024, to December 23, 2024, there will be a 21-day extension from the original deadline to complete their initial BOI submissions.
Importance of Compliance
It’s important for reporting companies to keep in mind that the Fifth Circuit still needs to evaluate the appeal’s merits.
Therefore, they should ensure they adhere to the new deadlines for compliance to avoid any potential issues.
By staying informed and prepared, these companies can navigate this evolving regulatory landscape more effectively.
Source: Natlawreview.com