Injunction Temporarily Prohibits Enforcement of the Corporate Transparency Act
- KO Firm
- |
- December 4, 2024
Updated December 26, 2024: As of December 26, 2024, the nationwide injunction halting the enforcement of the Corporate Transparency Act has been reinstated by the Fifth Circuit Court of Appeals. The Financial Crimes Enforcement Network (FinCEN) has announced that U.S. businesses are not currently required to file Beneficial Ownership Information (BOI) Reports until further notice, although they may do so voluntarily.
While companies may choose to hold off for now on their BOI Report filings, we recommend that businesses continue to evaluate the applicability of the CTA and, if not exempt, continue gathering the necessary information to file a report if the ruling is stayed or overturned. There is no guaranty of an extension to the deadlines if indeed this ruling is stayed or overturned.
For the latest updates, please visit https://fincen.gov/boi. To continue preparations, check out our step-by-step filing guide below. If you have any questions, please contact your primary KO attorney or reach out to us at [email protected].
Updated December 3, 2024: On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction halting enforcement of the Corporate Transparency Act (CTA) and the related FinCEN regulations requiring the filing of Beneficial Ownership Information (BOI) Reports, holding that the CTA is likely unconstitutional.
While this injunction temporarily relieves all companies from having to file a BOI Report, we caution that the injunction is currently only temporary and could be stayed by an appellate court. So, while companies may choose to hold off for now on their BOI Report filings due to this injunction, we recommend that businesses continue to evaluate the applicability of the CTA and, if not exempt, continue gathering the necessary information to file a report if the ruling is stayed or overturned. There is no guaranty of an extension to the deadlines if indeed this ruling is stayed or overturned.
To continue preparations, check out our step-by-step filing guide. We will continue to monitor developments and provide ongoing updates. If you have any questions, please contact your primary KO attorney or reach out to us at [email protected].
