Important update: Nationwide injunction pauses CTA reporting requirements
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide temporary injunction, stopping enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) Reporting Rule. This ruling temporarily removes the requirement for reporting companies to disclose their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). The court explained that “reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.” The decision rests on the court’s conclusion that the CTA is likely unconstitutional.
The injunction applies nationwide, freeing all businesses subject to the CTA from filing obligations until further notice. Companies formed before 2024 no longer need to submit their initial BOI reports to FinCEN by the January 1, 2025, deadline. Companies formed in 2024 are not required to report within 90 days of their formation. While the legal case proceeds, FinCEN will comply with the court’s order. Companies can still choose to submit BOI reports voluntarily.
Businesses should stay vigilant and monitor their reporting obligations. The district court’s decision is temporary. On December 5, 2024, the Department of Justice, acting on behalf of the Department of the Treasury, filed an appeal. If the injunction is lifted and compliance requirements return, it remains unclear whether deadlines will be adjusted. Companies should look out for updates or guidance from FinCEN about the next steps. We will share new information as it becomes available.
You can read more about Beneficial Ownership Information reporting here: https://fincen.gov/boi
