And the twists keep coming… Last week we notified you that a panel of federal judges lifted the preliminary injunction blocking enforcement of the Corporate Transparency Act (“CTA”), which created a new reporting requirement starting in 2024 known as a “Beneficial Ownership Information” or “BOI” report.
On December 26th, the Fifth Circuit Court of Appeals issued an order that reinstates the injunction for the time being, meaning that as of right now, you do not need to file a BOI report. However, the litigation is ongoing and the decision is not final. While a hearing is scheduled for March 25, 2024 for the Fifth Circuit to hear arguments on the matter, the government could seek further emergency relief from the Fifth Circuit or the US Supreme Court, which could result in resumption of the reporting requirements sooner than March.
Given the uncertainty created by the twists and turns this litigation has taken to date, companies that have not yet reported should consider assessing the reporting requirements and be ready and prepared to file BOI reports with the U.S. Treasury Financial Crimes and Enforcement Network (“FinCEN”) on short notice. While FinCEN did extend reporting deadlines following the December 23rd lifting of the injunction, it is not known if they will do so again.
If you would prefer to file a report now and not wait for the litigation to be resolved, FinCEN is still accepting voluntary submissions of BOI reports at https://www.fincen.gov/boi, or we can connect you with a third-party service provider to help streamline the process.
We will continue to follow developments and will keep you apprised as more information becomes available.