UPDATE, December 27: Yesterday a Fifth Circuit order restored the ban on enforcing the Corporate Transparency Act's beneficial ownership requirements, pending another hearing. More coverage here.
UPDATE, DECEMBER 23, 2024. The Fifth Circuit Court of Appeals has reversed the injunction. The filing deadlines are back on. More details here. Original post below is "inoperative," as they used to say.
As a result of a nationwide preliminary injunction issued by a federal district court (discussed here), the U.S. Treasury Department, through the Financial Crimes Enforcement Network (FinCEN), just announced “reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect.”
This means any entity that has not yet filed its Beneficial Ownership Information (BOI) with FinCEN can now pause until this ongoing litigation is resolved. The government has appealed the injunction and states it believes that the Corporate Transparency Act is constitutional. Also, although not currently required, FinCEN states “reporting companies may continue to voluntarily submit beneficial ownership information reports.”
Clients looking for further advice should consult with their legal counsel.
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