The CTA has ping-ponged back and forth between injunction and lifted stay. And here we are again. On February 18, 2025 the Federal District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al lifted the injunction that stayed enforcement of the Corporate Transparency Act (CTA). As a result, mandatory BOI reporting is reinstated.
The new deadline for the majority of reporting entities who were originally requried to report between December 3, 2024 through February 18, 2025, will now be March 21, 2025. Reporting entities whose deadline to report falls after March 21 will still report on their later deadline. For example, entities that were formed after December 21, 2024, or entites that qualify for disaster relief extensions.
In its announcement, FinCEN emphasized its commitment to reducing the regulatory burden on businesses. During this 30-day extension period, FinCEN will assess potential adjustments to future reporting deadlines, focusing on entities that pose the most significant national security risks. Additionally, FinCEN has signaled its intention to revise the BOI reporting rule later this year to alleviate the compliance challenges faced by lower-risk entities, including many small businesses. However, that appears to do little for those entities who must report by March 21, 2025.
For those entities required to report, FinCEN provides a free e-filing system accessible at https://boiefiling.fincen.gov. Comprehensive information regarding the BOI requirements can be found on FinCEN's official website at fincen.gov/boi.
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