The government appealed this decision on December 5, 2024, and FinCEN posted the following message on its website:
“In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
This means that while the Texas court order is in effect, reporting companies are not required to comply with the January 1, 2025, deadline to submit their initial BOI reports. Newly created reporting company filing deadlines are also on pause.
To date, several challenges have been made against the CTA across the nation with varying outcomes. Earlier this year, an Alabama district court also found the law unconstitutional but only granted relief for its plaintiffs, members of the National Small Business Association. This case and others are pending appeals.
It is uncertain when final decisions in the appeals cases will be determined. If you wish to voluntarily comply with the CTA and BOI reporting requirements or continue gathering information, you may, but it is not required at this time.
Please contact your RubinBrown adviser with questions or concerns.
Published: 12/12/2024
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