By Terry Ann Donner, RN, JD, CCM, CSA
On December 26, 2024, the Fifth Circuit Court of Appeals (the “Court”) reinstated the preliminary injunction against the filing of Beneficial Ownership Information (“BOI”) as required under the Corporate Transparency Act (“CTA”). The Court reversed its previous December 23, 2024, decision in Texas Top Cop Shop, Inc., et al., No. 4:24-cv-00478 (E.D. Tex.) which had lifted the injunction against the BOI filings. This makes the January 13, 2025, filing extension granted by the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) unenforceable. Under the current judicial decision, freelancers and certain other businesses will not have to report BOI to FinCEN.
What Should You Do
The Court did not want to make a constitutional decision on the CTA while the arguments on both sides are still under consideration in the expedited appeal of this case.
What you should know is that the reinstatement of the nationwide preliminary injunction does not make the CTA legislation go away. It simply once again suspends its enforcement. If you decide you will not file your BOI, and the injunction is removed, you may need to quickly file your BOI to comply.
If you choose not to file your BOI at this time, you will want to have the information you need to file ready if the injunction is lifted, and you must file quickly.
You can choose to file even though the January 13, 2025, deadline has been removed by the Court. If the injunction is ultimately lifted, you will be in compliance.
Nothing in this article is intended to be legal advice. Please contact your legal advisor if you have any questions regarding your compliance with CTA.
December 27, 2024
Donner Health Communications LLC