Appeals Court grants temporary stay to BOI Reporting

On Dec. 23, the U.S. Court of Appeals, Fifth Circuit granted a temporary stay of the nationwide injunction which we previously communicated with you about related to the Corporate Transparency Act (CTA). 

This stay has reinstated the enforcement of the CTA, and with it, the Beneficial Ownership Information registration process for all nonexempt businesses. 

The Treasury Department took the injunction period into consideration when issuing an extension of time to file the BOI reports as follows:

• Reporting companies that were created or registered prior to Jan. 1, 2024, have until Jan. 13, 2025, to file their initial beneficial ownership information reports. (These companies would otherwise have been required to report by Jan. 1, 2025.)
• Reporting companies created or registered in the U.S. on or after Sept. 4, 2024, that had a filing deadline between Dec. 3, 2024, and Dec. 23, 2024, have until Jan. 13, 2025, to file their initial beneficial ownership information reports.
• Reporting companies created or registered in the U.S. on or after Dec. 3, 2024, and on or before Dec. 23, 2024, have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports.
• Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond Jan. 13, 2025. These companies should abide by whichever deadline falls later.
• Reporting companies that are created or registered in the U.S. on or after Jan. 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.

The CTA is a Federal law that was enacted to increase the Corporate Transparency by requiring certain companies to disclose their beneficial ownership to the Financial Crimes Enforcement Network (FinCen). 

Zinner & Co. will continue to monitor this stay of the injunction issued in the Texas Cop Shop, Inc. v. Garland, as the court case has not yet been settled.

While we are unable to file your BOI registrations due to the fact that it is considered to be the practice of law when filed by anyone other than the beneficial owner, we do have resources that we can recommend to assist. Please contact one of your Zinner Client Service Team members for more information.

Finally, to assist in the completion of the registration process, we have also attached the BOI Small Entity Compliance Guide that was issued by FinCen back in December 2023 to provide additional guidance.