Corporate Transparency Act Injunction Has Been Lifted: What It Means for Business Owners
For updated information, please see our most recent post from December 30, 2024 Corporate Transparency Act Injunction Has Been Reinstated: Reporting Companies Are Not Currently Required to File with FinCEN
The Corporate Transparency Act (CTA) requires most business entities to file a Beneficial Ownership Information Report (BOIR) with the Financial Crimes Enforcement Network (FinCEN). On December 9 we wrote that a US District Court in the Eastern District of Texas issued a nationwide preliminary injunction against enforcement of the CTA in the Texas Top Cop Shop, Inc. v. Garland case. As a result of that preliminary injunction, FinCEN previously had stated that companies were not required to file a BOIR with FinCEN while the preliminary injunction remained in force.
The Department of Justice (DOJ) appealed the injunction in the Texas Top Cop Shop case to the US Court of Appeals for the Fifth Circuit and on December 23rd the Fifth Circuit granted the DOJ’s motion to stay the injunction pending appeal. This means that the requirement to file a BOIR under the CTA has been reinstated.
FinCEN also recently issued an Alert granting limited extensions to file a BOIR including an extension until January 13, 2025 for companies that were created or registered prior to January 1, 2024.
The FinCEN website offers a host of reference materials and guidance for BOIR filing, including a small entity compliance guide (https://www.fincen.gov/boi/small-entity-compliance-guide).
If you have questions relating to the Federal Corporate Transparency Act or the New York State LLC Transparency Act, contact our business attorneys, Michael F. McConville at mmcconville@mccmlaw.com or 585-512-3520; Letty Laskowski at llaskowski@mccmlaw.com or 585-512-3538; Amy L. Varel at avarel@mccmlaw.com or 585-512-3506.
This publication is intended as an information source for clients, prospective clients, and colleagues and constitutes attorney advertising. The content should not be considered legal advice and readers should not act upon information in this publication without individualized professional counsel.
About MCCM
McConville Considine Cooman & Morin, P.C. is a full-service law firm based in Rochester, New York, providing high-quality legal services to businesses and individuals since 1979. With over a dozen attorneys and a full paralegal support staff, the firm is well-positioned to right-size services tailored to each client. We are large enough to provide expertise in a broad range of practice areas, yet small enough to devote prompt, personal attention to our clients.
We represent a diverse range of clients located throughout New York State and New England. They include individuals, numerous manufacturing and service industry businesses, local governments, and health care professionals, provider groups, facilities and associations. We also serve as local counsel to out-of-state clients and their attorneys who have litigation pending in Western New York courts. For more information, please contact us at 585.546.2500.