BREAKING NEWS – AGAIN!
CORPORATE TRANSPARENCY ACT REPORTING REQUIRED AGAIN
BUT DEADLINE EXTENDED

December 23, 2024

In our last Breaking News Alert we told you that the Corporate Transparency Act was temporarily on hold, but if you choose not to file you should keep track of pending developments.  We were not expecting developments this quickly, but if you did not yet file your Beneficial Owner Information Report, do it now!

The United States District Court for the Eastern District of Texas has stayed the nationwide preliminary injunction issued earlier this month by a federal district court in Texas.  As a result, the injunction against enforcement of the Corporate Transparency Act is no longer in effect and FinCEN can continue to enforce the filing requirement while the litigation continues in the case of Texas Top Cop Shop, Inc., et al. V. Garland et al. This means that all companies that are not otherwise exempt are again required to file a Beneficial Owner Information Report with FinCEN.  

However, because some companies did not file because of the preliminary injunction, FinCEN has just published the following extended deadlines for compliance:

• Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)
• Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
• Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
• Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
• Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
• As indicated in the alert titled “Notice Regarding National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)”, Plaintiffs in National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)—namely, Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024)—are not currently required to report their beneficial ownership information to FinCEN at this time.

There are significant civil and criminal penalties for noncompliance.

This blog is written as of December 2024. Recommendations and legal requirements are changing rapidly, so please continue to review our legal updates or review postings on relevant government websites.

All blogs on this site are for educational purposes only, do not constitute legal advice or opinion, and should not be applied to your situation, or any specific situation, without consultation with counsel. Strategy Law, LLP does not provide any legal advice concerning any matter discussed in a blog except upon formal engagement including, without limitation, execution of Strategy Law, LLP’s formal legal services agreement, and with respect to specific factual situations.  No blog constitutes a guaranty, warranty, or prediction regarding the result of any legal matter discussed in the blog or any representation.