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FinCEN Suspends Corporate Transparency Act Reporting

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FinCEN suspends Corporate Transparency Act reporting deadlines following order granting a preliminary injunction in federal district court in Texas.
2 minute read
December 17, 2024
Vince Houk
Vince Houk
Partner-in-Charge, International Tax

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Update: BOI Reporting is Required with Revised Dates. Read More. 

In a significant legal development, the Corporate Transparency Act’s (CTA) reporting deadlines have been temporarily suspended. Back in 2022, the Financial Crimes Enforcement Network (FinCEN) issued regulations related to the CTA, which Congress enacted on January 1, 2021. These regulations required certain entities to report specific ownership information during 2024 and other entities to report information starting on January 1, 2025.

For entities formed before 2024, the reporting deadline was set to be January 1, 2025. The date was set to be within 90 days of formation for entities formed during 2024 and within 30 days of formation for entities formed after 2024.

However, on Tuesday, December 3, 2024, a federal district court in the Eastern District of Texas issued an order granting a nationwide preliminary injunction that suspends all deadlines to comply with the CTA’s reporting requirements. The Department of Justice filed a Notice of Appeal on December 5, 2024.

While this litigation is ongoing, FinCEN has stated it will comply with the order issued by the U.S. District Court for the Eastern District of Texas for as long as it remains in effect. FinCEN further stated this means that reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability for failure to file while the preliminary injunction remains in effect. However, reporting companies may continue to voluntarily submit reports.

Stay Informed During the CTA Reporting Suspension

For more information, visit the FinCEN website at https://www.fincen.gov/boi.

The CTA is not a part of the Internal Revenue Code. Instead, it is a part of the Bank Secrecy Act, a set of federal laws that require record-keeping and report filing on certain types of financial transactions. Under the CTA, BOI reports will not be filed with the IRS, but with the Financial Crimes Enforcement Network, another agency of the Department of Treasury. Accordingly, Weaver does not provide advice regarding CTA reporting requirements, nor does the firm facilitate CTA compliance and reporting.

Please consult your CTA adviser regarding how to approach your CTA reporting following this recent reporting suspension by FinCEN.

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