By Preston Polk
February 24, 2025
If you’ve been keeping up with the Corporate Transparency Act (CTA), then you are well aware of the on-again, off-again nature of developments surrounding the reporting requirements. Since the Treasury Department’s Financial Crimes Enforcement Network’s (FinCEN) rules implementing the CTA took effect January 1, 2024, there have been several legal challenges to the constitutionality of the CTA.
Last week, the Federal District Court for the Eastern District of Texas issued an order in Smith, et al. v. U.S. Department of the Treasury, et al., granting the defendant’s motion to stay a nationwide injunction. This followed a January 23, 2025, order from the Supreme Court granting the defendant’s motion to stay a nationwide injunction in Texas Top Cop Shop, Inc. v. Bondi (formerly, Texas Top Cop Shop, Inc. v. McHenry and Texas Top Cop Shop v. Garland).
With each of the nationwide injunctions stayed, FinCEN’s regulations implementing the Beneficial Ownership Information (BOI) reporting requirements are once again back in effect. What does this mean for your business? Well, if you haven’t already, it is time to begin preparing to file the BOI reports for your companies.
FinCEN has provided companies with 30 days from February 19, 2025 to comply with the BOI reporting requirements in light of these developments. For a majority of reporting companies, the new deadline to file an initial, updated and/or corrected BOI report is March 21, 2025. However, FinCEN noted in its February 19th notice that it will “assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks.” Further, FinCEN intends to “initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.”
While the March 21, 2025 filing deadline and the BOI reporting rules are subject to change, we encourage you to comply with the March 21st deadline to avoid penalties. If you or your company needs assistance navigating CTA compliance and BOI reporting, Cantey Hanger LLP and its attorneys are ready to help.
For a more in-depth review of the CTA and BOI reporting requirements, see Cantey Hanger’s article “IS YOUR COMPANY READY FOR THE CORPORATE TRANSPARENCY ACT?” linked here, or contact Preston Polk.
Preston R. Polk is an attorney in Cantey Hanger’s Business Transactions practice group, focusing on mergers and acquisitions, corporate finance, banking, real estate and other business transactions. He can be reached at ppolk@canteyhanger.com or at 817-877-2814.
This article is for information purposes only and is not intended to be legal advice or substitute for consulting an attorney. We recommend that you discuss your particular situation with your attorney when you need legal advice. The information contained herein is subject to change and may not reflect the most current legal development.