On Tuesday, December 3, 2024, a federal district court in Texas issued an order granting a nationwide, preliminary injunction that does the following:
- Enjoins enforcement of the Corporate Transparency Act (CTA) and regulations implementing its beneficial ownership information (BOI) reporting requirements
- Stays all deadlines to comply with the CTA’s reporting requirements, including the January 1, 2025 deadline for reporting companies to submit their initial BOI report.
If the preliminary injunction remains in effect:
- Reporting companies are not required to report BOI to FinCEN; and
- Reporting companies will not be subject to liability for failing to report their BOI
- Reporting companies may continue to voluntarily submit BOI reports
What does this mean for reporting companies:
- While reporting companies are not required to comply with the CTA while the preliminary injunction is in place, they should still collect the necessary information and prepare the BOI Report. This ensures they are ready to file the BOI Report promptly if the injunction is lifted or stayed, or if the courts ultimately uphold the CTA’s constitutionality.
Check the FinCEN Beneficial Ownership Information Reporting page and the AICPA beneficial ownership information (BOI) reporting page for more.
For more information about the CTA reporting requirements, read our previous blog post: https://www.lohmancompany.com/the-corporate-transparency-act-beneficial-ownership-information-reporting-requirement/