The United States Fifth Circuit Court of Appeals has lifted the injunction imposed by a Texas District Court, setting January 13, 2025, as the new deadline for the Financial Crimes Enforcement Network (FinCEN) Beneficial Ownership Information (BOI) reporting. This report, established under the Corporate Transparency Act (CTA) signed into law on January 1, 2021, affects a broad range of corporate and business entities.
Previously, the BOI reporting requirements were halted by an injunction in the case Texas Top Cop Shop, Inc., et al. v. Garland, et al., where the District Court ruled the CTA unconstitutional. However, the Fifth Circuit Court overturned this ruling, stating that “the government has made a strong showing that it is likely to succeed on the merits in defending CTA’s constitutionality.”
FinCEN has issued a new alert updating reporting deadlines for entities impacted by the injunction. Entities formed before January 1, 2024, now have until January 13, 2025, to file their BOI reports, extending the original January 1, 2025, deadline. Similarly, entities formed or registered between September 4, 2024, and December 23, 2024, must also comply with this new deadline.
For companies formed between December 3, 2024, and December 23, 2024, FinCEN requires BOI reporting within 21 days of their original deadline. Entities created after January 1, 2025, must file BOI reports within 30 days of creation or notification.
Special provisions apply to businesses located in areas affected by hurricanes such as Milton, Helene, and Beryl. These entities must adhere to the later of the two deadlines: January 13, 2025, or the designated disaster relief extension.
Despite this extension, many qualifying entities remain unaware of the Fifth Circuit’s decision. Nearly 8 million businesses have already complied with BOI reporting, but many small businesses and corporations may still be at risk of non-compliance.
If you hold a beneficial interest in a qualifying entity, this extension should be treated as final. Act promptly to meet the requirements and avoid penalties, ensuring your business remains in compliance with the law.
