March 4 Update: The U.S. Department of the Treasury has announced it will not enforce penalties, fines or deadlines related to the Corporate Transparency Act’s beneficial ownership information (BOI) reporting requirements. The Treasury Department will propose an updated rule that requires reporting for foreign companies only.
A federal court in Texas has issued an order prohibiting the federal government from enforcing the Corporate Transparency Act (CTA). The CTA required many businesses to report beneficial ownership information by January 1, 2025. Under the new order, the Court has indicated the CTA may not be enforced and that companies do not need to comply with the January 1 deadline. The injunction applies nationwide.
It is important to note that the injunction is preliminary and the decision will likely be appealed. We are carefully monitoring this developing situation. Businesses that were previously required to file, but have not yet done so, may hold until a final ruling has been provided.
If you have additional questions on how this impacts your business, please contact your SH&A representative for more information.