Again The Corporate Transparency Act is making headlines before its implementation, which has now been reinstated with an extension to January 13, 2025 for reporting companies to file their initial beneficial ownership information (BOI) reports with FinCen.
The Corporate Transparency Act has been the subject of some recent legal action taken by CAI in hopes of preventing this Act from impacting over 300,000 associations across the United States from being adversely impacted as of January 1, 2025. The most recent actions taken by the US District Court for the Eastern District of Texas in the matter of Texas Top Cop Shop, Inc et al. v. Garland et al can be found HERE or on the weblink below.
To learn more about what work is being done by CAI regarding the Corporate Transparency Act, please click on the links below to learn more:
UPDATE 12/23/24 – CTA National Update: Filing Deadline Reinstated With Deadline Extensions
UPDATE 12/3/24 – Preliminary Nationwide Injunction Filed in US District Court in Texas
Corporate Transparency Act — Advocacy Priorities Overview
10/2/2024 — CAI Sends White Paper to US Department of Treasury on CTA
Nov 2014 – CAI reports preliminary injunction filed has been denied / CTA Updates and Resources
The latest updates on The Corporate Transparency Act are as noted below from a CAI National article (below) as taken from the 12/23/24 Update in the link found HERE:
Given this late-breaking federal court development, FinCEN has extended reporting deadlines(Opens in a new window) as follows:
- Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)
- Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
- Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
- Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
- Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
Learn more regarding FinCEN’s reporting deadline extensions here(Opens in a new window).
This continues to be a developing matter, but at the time of this communication applicable community associations should proceed to file their BOI reports in compliance with their applicable FinCEN deadline extension.
The Fifth Circuit Court of Appeals court order can be read here(Opens in a new window). This order is still not a final ruling on the CTA’s constitutionality. The Fifth Circuit also ordered that the appeal in this lawsuit be expedited to the next available oral argument panel.
CAI is continuing to track movements in the federal courts over CTA challenges and is in contact with the United States Department of Treasury urging an administrative delay be issued due to the chaos and confusion created by these recent court rulings and Congress deciding NOT to take legislative action to extend the filing deadline.
On Dec. 3, the U.S. District Court for the Eastern District of Texas published a decision in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. issuing a preliminary nationwide injunction against the Corporate Transparency Act (Act). The court granted Plaintiff’s request for a preliminary injunction, blocking the U.S. Department of Treasury from enforcing the act’s beneficial ownership information (BOI) reporting requirements.
The court granted Plaintiff’s request for a preliminary injunction, blocking the U.S. Department of Treasury from enforcing the act’s beneficial ownership information reporting requirements.
In his opinion, Judge Amos L. Mazzant III grants the Plaintiff’s request to preliminary enjoin the Government from enforcing the Corporate Transparency Act and its Implementing Regulations, ruling that “Neither may be enforced, and reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.”
This preliminary injunction applies nationwide, halting enforcement and compliance of the Act’s beneficial ownership reporting requirements across the entire United States. CAI’s legal team believes the injunction applies to all community associations incorporated within the U.S. Read more here: https://advocacy.caionline.org/corporate-transparency-act-blocked-nationwide-by-texas-federal-judge/
On Dec. 5, the Government appealed this ruling to the U.S. Court of Appeals for the Fifth Circuit. FinCEN issued guidance that “in light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
On Dec. 18th, CAI filed an amicus brief in support of the plaintiffs in Texas Top Cop Shop, Inc. v. Garland, et al., in their case challenging the CTA’s implementation and the importance of maintaining the current nationwide temporary preliminary injunction.
This injunction is not a final ruling on the CTA’s constitutionality. This is a time of uncertainty, and community associations should stay informed, vigilant, and be prepared to comply if the injunction is lifted or further legal developments occur.
