Maloney Law, P.C. Provides Important Legal Compliance Update for Small & Medium Size Businesses

Beneficial Ownership Information (BOI) Reports are again NOT REQUIRED by FinCEN at this time.

On December 26, 2024, the preliminary injunction delaying the enforcement of the Corporate Transparency Act was reinstated by the US Court of Appeals for the 5th Circuit.  This ruling reverses the Court’s previous ruling on December 23rd.

For those unfamiliar with this regulation, BOI Reports were mandated by the Corporate Transparency Act (CTA).  The CTA was enacted a few years ago to assist the U.S. Treasury Department, Financial Crimes Enforcement Network (FinCEN) in fighting money laundering and other financial crimes.

The CTA applies broadly to most small and medium size businesses (including LLCs, S-Corps, family businesses, and holding companies (e.g. an LLC formed to hold real estate, etc.) to identify who owns and controls the business.

BOI Report were originally due by January 1, 2025.  On December 3, 2024, a US District Court granted a preliminary injunction which caused a pause in the filing requirement.  On December 23, 2024, the Fifth Circuit lifted the injunction.  FinCEN then extended the filing deadline to January 13, 2025.  In reaction to this new deadline, on December 26, 2024, the Fifth Circuit then decided to reinstate the preliminary injunction.

Maloney Law, P.C. will continue to monitor the various court rulings and guidance from FinCEN and will provide updates as new information and guidance becomes available.

Please feel free to contact Tim Maloney with any questions or to further discuss at tmaloney@maloneylawpc.com or (570) 309-3014.