US Court of Appeals Reinstates CTA Compliance Requirement, New deadline to file is January 13, 2025
December 26, 2024
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Please note that reporting companies must once again comply with the Corporate Transparency Act (“CTA”) and the related Beneficial Ownership Information (“BOI”) reporting rules by January 13, 2025. This situation is rapidly evolving but please see below for further information.
On December 23, 2024, the United States Court of Appeals for the Fifth Circuit (“Fifth Circuit”) temporarily lifted the nationwide preliminary injunction prohibiting the U.S. Department of Treasury and the Financial Crimes Enforcement Network (“FinCEN”) from enforcing the CTA and its BOI reporting requirements. Following the Fifth Circuit’s ruling, FinCEN issued an alert and extended the reporting deadlines. Given that the original January 1, 2025, deadline is fast approaching, FinCEN extended the reporting deadline for reporting companies created prior to January 1, 2024, that are not eligible for an exemption, to January 13, 2025. For reporting companies who have not yet filed, they must now file BOI reports by the extended January 13th deadline.
Companies that already filed their initial BOI report with FinCEN are also under the ongoing obligation to file updated reports reflecting changes to previously submitted information. Any changes to already filed BOI must be submitted within 30 days of the change. The following are some examples of the changes that would require an updated BOI report:
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Any change to the information reported for the reporting company, such as registering a new business name.
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A change in beneficial owners, such as a new CEO, or a sale that changes who meets the ownership interest threshold of 25 percent.
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Any change to a beneficial owner’s name, address, or unique identifying number previously provided to FinCEN. If a beneficial owner obtained a new driver’s license or other identifying document that includes a changed name, address, or identifying number, the reporting company also would have to file an updated beneficial ownership information report with FinCEN, including an image of the new identifying document.
While litigants could seek further review from the Fifth Circuit or relief from the United States Supreme Court, the CTA reporting obligations and penalties for failing to comply are reinstated at this time.
If you have questions, please contact us for further assistance with CTA compliance.
This Aviation Blog is intended to keep readers current on developments in the law. It is not intended to be legal advice. If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202-659-6665 or dderco@eckertseamans.com; Jay Julien at 202.659.6648 or jjulien@eckertseamans.com, or Tyler Myers at 202.659.6642 or tmyers@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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