Beneficial Ownership Information (BOI) Reporting Tracker

Corporate Transparency Act (CTA) takes effect

The U.S. Court of Appeals for the Fifth Circuit stayed the preliminary injunction from the Texas Top Cop Shop case, effectively reinstating the CTA’s reporting requirements. Following this decision, FinCEN extended the filing deadline for existing reporting companies to January 13, 2025.

A separate panel of the Fifth Circuit reinstated the nationwide preliminary injunction, once again pausing the enforcement of the CTA.

In Smith v. U.S. Department of the Treasury, Judge Jeremy Kernodle of the U.S. District Court for the Eastern District of Texas issued a nationwide injunction against the CTA’s reporting requirements, citing concerns about the act’s constitutionality and its impact on small businesses.

The U.S. Supreme Court stayed the nationwide preliminary injunction from the Texas Top Cop Shop case, allowing the enforcement of the CTA to proceed. However, the separate injunction from the Smith case remained in effect, keeping the reporting requirements on hold.

FinCEN issued a statement clarifying that, due to the injunction in the Smith case, reporting companies were not required to file beneficial ownership information and would not be subject to liability for failing to do so while the injunction remained in force.

The Smith injunction was lifted, enabling full enforcement of the CTA.

FinCEN issued updated guidance, confirming that the CTA BOI reporting requirements were in effect and extending the deadline to March 21, 2025.

Treasury announces it will not enforce the rule, suspending penalties and stating that future reporting requirements will only apply to foreign entities.