12/27/2024
THE ONGOING ISSUE OF BENEFICIAL OWNERSHIP REPORTING REQUIREMENTS FOR BUSINESS OWNERS
UPDATE JANUARY 3, 2025 - The Justice Department (DOJ) filed an emergency application with the Supreme Court asking it to stay the district court injunction that is preventing the government from enforcing the Corporate Transparency Act and its requirements to report beneficial ownership information (BOI).
UPDATE: DECEMBER 26, 2024 - The Court of Appeals reversed itself and reinstated the injunction.
UPDATE: Dec. 26, 2024 – A Fifth Circuit Court panel has vacated the previous stay of the CTA. This reinstates the nationwide injunction while the merits panel considers the appeal.
The US Corporate Transparency Act requires companies to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). The original deadlines for companies that are not exempt were temporarily halted by an injunction put in place by a Texas district court on December 3, 2024. However, on December 23, 2024, the Fifth Circuit Court of Appeals granted a Department of Justice (DOJ) motion to lift that injunction. Due to this back and forth, the Treasury Department has issued limited extensions to the original deadlines.
Updated BOI Filing Deadlines:
The new deadline for reporting companies created or registered before January 1, 2024, is January 13, 2025.
Reporting companies created or registered on or after September 4, 2024, that had an original filing deadline between December 3, 2024, and December 23, 2024, now have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
Reporting companies created or registered between December 3, 2024, and December 23, 2024, have an additional 21 days from their original filing deadline to file.
Reporting companies created or registered on or after January 1, 2025, will have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
Reporting Companies Qualifying for Disaster Relief may have extended deadlines beyond January 13, 2025.
Businesses and owners that do not comply with these deadlines may face civil penalties of up to $591 a day. They could also face up to $10,000 in criminal fines and up to two years in prison.
