Recent legal developments have altered the timeline for beneficial ownership information (BOIR) reporting requirements under the Corporate Transparency Act (CTA), including the deadlines for initial filings and extensions granted due to legal challenges. On December 23, 2024, a decision from a federal Court of Appeals reinstated the reporting obligations for most businesses. Reporting companies are once again required to file their BOI with the Financial Crimes Enforcement Network (FinCEN). Recognizing the challenges posed by a preliminary injunction that temporarily halted enforcement, the Department of the Treasury has extended key reporting deadlines. Here’s what you need to know:
New Deadlines for Reporting Companies
- For Companies Created or Registered Before January 1, 2024
You now have until January 13, 2025, to submit your initial BOI report to FinCEN. (The original deadline was January 1, 2025.). This extension accounts for delays caused by the preliminary injunction that temporarily paused enforcement. - For Companies Registered Between September 4, 2024, and December 23, 2024
- If your filing deadline fell between December 3, 2024, and December 23, 2024, your new deadline is January 13, 2025.
- If your company was created between December 3, 2024, and December 23, 2024, you have an additional 21 days beyond your original deadline to file.
- For Companies Qualifying for Disaster Relief
Disaster relief may extend your reporting deadline beyond January 13, 2025. If this applies to you, follow the later of the two deadlines. - For Companies Created on or After January 1, 2025
Businesses formed after this date must file their BOI report within 30 days of receiving notice of their formation or registration.
Notable Exemptions
Certain entities involved in the National Small Business United v. Yellen case (No. 5:22-cv-01448) are exempt from BOI reporting requirements at this time. This exemption covers:
- Members of the National Small Business Association as of March 1, 2024.
- Isaac Winkles and the entities where he is the beneficial owner or applicant.
Ongoing Legal Challenges to the CTA
The CTA continues to face legal opposition, with notable cases challenging its enforcement. Although a preliminary injunction was issued by the U.S. District Court for the Eastern District of Texas on December 3, 2024, the Fifth Circuit Court of Appeals stayed that injunction on December 23, 2024, allowing enforcement of the CTA to resume. Other courts, including those in Virginia and Oregon, have upheld the CTA’s constitutionality, and the Department of Justice remains confident in its legal standing. These legal proceedings are ongoing, so further changes remain possible.
What This Means for Your Business
The recent changes give businesses more time to comply, but the complexity of BOI reporting can make the process challenging. Filing requires careful attention to detail, as errors or omissions in reporting could lead to costly penalties, fines, or even legal exposure. For example, a common mistake is failing to update ownership information promptly when changes occur, which can result in significant fines.This is especially true for businesses unfamiliar with the nuances of the Corporate Transparency Act or those navigating overlapping deadlines. Compliance is not just about avoiding penalties – it’s about protecting your business’s reputation and ensuring you meet federal obligations. Acting promptly and seeking professional guidance can save you time, stress, and potential financial repercussions.
We’re Here to Help
Navigating new reporting requirements can feel overwhelming, especially with shifting deadlines and evolving legal challenges. Lengea specializes in helping businesses like yours stay compliant and avoid unnecessary risks. If you’re unsure about your obligations or need assistance filing your BOI report, reach out to us today. We’re here to provide clear guidance and ensure your business meets all the necessary requirements.
Contact us to schedule a consultation and let us help you focus on what you do best – running your business.