An injunction has been filed and this may impact the BOI filing requirement. We will continue to provide updates as they come.
Below are the must know details:
The U.S. District Court for the Eastern District of Texas on Dec. 3, 2024, issued a nationwide preliminary injunction suspending (temporarily) the government's enforcement of the Corporate Transparency Act (CTA) and its Implementing Regulations. This is the first federal district court in the country to issue a nationwide injunction.
It is expected that the government may seek an expedited appeal of the decision and request a stay of the order of the federal district court.
As the ultimate outcome of this decision is uncertain at this time, Reporting Companies that have not filed to date would be well advised to continue to gather the requisite information for filing and be prepared to file in anticipation of an appeals court granting a stay of the district court's order or otherwise limiting the application of the nationwide temporary injunction and enjoinment of the Beneficial Ownership Information (BOI) Reporting Rule.
If the temporary injunction were to be overturned or otherwise limited by the U.S. Court of Appeals for the Fifth Circuit, pre-2024 Reporting Companies would still be required to file their Initial BOI Report no later than Jan. 1, 2025. The Financial Crimes Enforcement Network (FinCEN) is still accepting BOI Reports and, to date, has not issued any public statements about the district court opinion.
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