On December 23rd, a federal Court of Appeals made a ruling related to the Corporate Transparency Act that could impact you. Here's what you need to know:
- Filings Resume: A federal appeals court has lifted the injunction on filing Beneficial Owner Information (BOI) reports. It’s officially back in effect, so be sure to file your report.
- Extension Granted: The Treasury Department announced an extension; most reports are now due by January 13, 2025 (details below).
- Penalty Remains: The penalty is still $591 per day for noncompliance (so file!)
What the heck is going on?
On December 23rd, a federal Court of Appeals ruled that reporting companies are once again required to file beneficial owner information reports with FinCEN. This stems from a decision made on December 3rd by a federal judge where an injunction was issued and filings were halted.
Separately, there is a case going through the system that was filed by the National Small Business Association (NSBA). This ruling has nothing to do with the NSBA case.
What is the Corporate Transparency Act?
The Corporate Transparency Act (CTA) requires most businesses to disclose their ultimate owners. It aims to clamp down on "bad actors" who use businesses as fronts for money laundering, tax fraud, financing terrorism, and other illicit activities. This is accomplished through the filing of beneficial information owner reports.
What if I already filed a BOI report?
Great! You should be in compliance and have nothing else to do. Congratulations, enjoy the rest of your holiday season.
So, I have to file then?
Yes you do. Our article, All about the Corporate Transparency Act, walks you through all the details.
The deadline depends on when your business was registered:
- If your business was registered prior to 2024, then you have until January 13, 2025 to file your BOI report.
- If your business was registered on or after September 4, 2024 AND you had a filing deadline of December 3 through December 23, 2024, then you have until January 13, 2025 to file your BOI report.
- If your business was registered on or after December 3 and on or before December 23, 2024 then you have 111 days from the date you were registered (90 days for the original deadline plus an extension of 21 days) to file your BOI report.
- If your business will be registered on or after December 24, 2024 and on or before December 31, 2024, then you will have 90 days from the date you were registered to file your BOI report.
- If your business will be registered on or after January 1, 2025, then you will have 30 days from the date you were registered to file your BOI report.
You can either file the report yourself (we've provided some great resources to assist you) or you can hire someone like your attorney or CPA to help you out (shameless plug: we offer this service).
How do I stay up to date?
First, a fair warning: there's a lot of false and misleading information circulating, especially on social media platforms. Misinformation can lead to errors and potential legal issues. Make sure you're getting your information from trusted sources!
To stay informed you can subscribe to our emails (and we'll keep you in the loop). We also recommend that you sign up for updates directly from FinCEN.
