Corporate Transparency Act is BACK: Deadlines Approaching
The Corporate Transparency Act (“CTA”) requires that certain business entities file Beneficial Ownership Information (“BOI”) with the Financial Crimes Enforcement Network (FinCEN) as part of an effort to better detect and prevent financial crimes.
Major Highlights & Quick Tips
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The Goal: Detection and prevention of financial crimes through ownership transparency.
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Constitutional Challenges: Congress has faced challenges on whether the CTA is constitutional since the law’s enactment.
Next Steps: Updated BOI Reporting Deadlines
The CTA is BACK and FinCEN has issued updated reporting deadlines:
Key Filing Dates
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March 21, 2025: The new filing deadline for the majority of reporting companies.
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Previously Authorized Filing Date: Reporting companies who were previously authorized to file BOI on a date later than March 21, 2025, must file by the date previously authorized.
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Example: If a reporting company was previously authorized to file BOI by April 5, 2025, the reporting company will have until April 5, 2025, to file.
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Current State of Affairs
On February 18, 2025, a Texas federal district court presiding over Smith v. U.S. Dept. of the Treasury granted the federal government’s request to lift the Court’s previously issued order barring Congress from enforcing the CTA.
In light of this decision, FinCEN has once again shifted the BOI reporting deadline for the majority of reporting companies to March 21, 2025.
Impact on YOU: Preparing for Compliance
The CTA is back in full swing. Businesses that qualify as “Reporting companies” under the CTA must comply with the BOI reporting requirements by the applicable filing deadline.
How to Comply:
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Determine Exemptions: An entity should first determine whether any exemptions to the CTA apply to the business.
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Identify Beneficial Owners: If no exemption is applicable, entities should prepare to file BOI by identifying all individuals who:
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Directly or indirectly exercise substantial control over the business; or
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Own or control at least 25% of the Reporting company’s ownership interest.
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Contact Bochner PLLC for Assistance
For more information on how the CTA may be applicable to your business and/or how to submit BOI to FinCEN, please reach out to Bochner PLLC or Matthew Shatzkes at matthew@bochner.law.
