UPDATE: Beneficial Owner Information Reports Due by March 21, 2025 (click here for FinCEN Notice)
February 18, 2025, the United States District Court in Texas that had ordered the injunction that had paused enforcement of the Corporate Transparency Act’s (“CTA”) Beneficial Owner Information Reporting (“BOIR”) requirements has granted the government’s request for a stay of that injunction pending appeal.
This means that FinCEN is authorized to enforce the BOIR requirements, yet again. However, in seeking the stay, government lawyers told the court that:
FinCEN intends to announce that it will extend the compliance deadline for thirty days. During that period, FinCEN intends to assess its potential options to prioritize reporting for those entities that pose the most significant national security risks while providing relief to lower-risk entities.
There is also legislation in Congress that would delay the enforcement of the CTA until January 1, 2026. That legislation unanimously passed the US House Of Representatives and is pending consideration in the US Senate.
Therefore, Reporting Companies, whether in existence prior to January 1, 2025, or created after that date, are advised to monitor this situation, and prepare to file their BOIR within the next thirty days.
This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions. When it matters in Michigan, we are the trusted legal advisors for businesses and individuals.
Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.