We apologize for yet another email about the CTA BOIR. At this point, we're tired of hearing about it, and we're sure you are, too! The federal government and the courts keep going back and forth on this law.
Here's the latest update:
On December 23, 2024, the Fifth Circuit Court of Appeals lifted the preliminary injunction that had been placed on the enforcement of the Corporate Transparency Act (CTA) by the U.S. District Court for the Eastern District of Texas. This action reinstated the requirement for reporting companies to file their Beneficial Ownership Information Reports (BOIR). The injunction had previously halted enforcement of the CTA's obligations, including the looming January 1, 2025 deadline for entities formed before January 1, 2024. However, with this stay, FinCEN can once again enforce the CTA, and reporting companies must comply with the filing requirements.
FinCEN also announced that because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, they are extending the reporting deadlines as follows:
- Reporting companies that were created or registered before January 1, 2024 have until January 13, 2025 to file their initial BOIR.
- Reporting companies created or registered on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial BOIR.
- Reporting companies created or registered on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial BOIR.
- Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
- Reporting companies that are created or registered on or after January 1, 2025 have 30 days to file their initial BOIR after receiving actual or public notice that their creation or registration is effective.
Sincerely,
Isaac D. Shutt
Attorney and Mediator
Shutt Law Firm, PLLC
Phone: 214-302-8197
Web: www.shuttlawfirm.com
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