There has been some legal “back and forth” surrounding enforcement of the Corporate Transparency Act and the requirement that most businesses must file Beneficial Ownership Information. As of today, the requirement has been reinstated, with a deadline extension until January 13, 2025.
A little history: On December 3, 2024, a federal court in Texas had issued a nationwide preliminary injunction temporarily preventing enforcement of the Corporate Transparency Act. This meant that any reporting company under the Act, which includes most small businesses, did not have to file a Beneficial Ownership Information Report by the January 1, 2025, deadline and could hold off on filing until the Texas case was fully decided.
On December 23, 2024, a federal court of appeals reversed that decision. Businesses are now required to comply with the original law, though the court did recognize the short notice and extended the deadline for filing to January 13, 2025.
There may be additional rulings on whether the Corporate Transparency Act is constitutional and enforceable. We will be closely monitoring the situation and include additional updates in future newsletters as the case unfolds.