On February 18, 2025, the US District Court for the Eastern District of Texas in Smith v. US Department of the Treasury entered an order staying the nationwide preliminary injunction against enforcement of the Corporate Transparency Act (CTA). As a result of the order, the nationwide injunction that had been prohibiting enforcement of the CTA beneficial ownership information (BOI) reporting requirements no longer applies, and the reporting of BOI is required once again.
Subsequently, FinCEN issued a new alert on February 19, 2025, stating that BOI reporting requirements were back in effect and that the deadline would be extended by 30 calendar days. The new deadline for most reporting companies, unless subject to a later deadline by exception, is March 21, 2025. FinCEN also noted that it intends to assess its options to further modify reporting deadlines and to “initiate a process this year to reduce the burden for lower-risk entities, including many US small businesses.”
As of this publication, (i) all entities formed prior to 1/1/2024 are required to complete their initial filing by March 21, 2025 and (ii) all entities formed on or after 1/1/2024 are required to complete their initial filing by March 21, 2025. There are many moving parts in this ongoing saga. Therefore, reporting companies should continue to monitor for developments, especially as applicable deadlines approach.
For more information, please contact one of the members of our CTA committee, Howard Davis, Aylin Daldal or Gary Kan.
