FinCEN has released an important update on its website regarding the ongoing legal proceedings related to the Corporate Transparency Act (CTA). The latest update, details the actions taken by the Department of Justice (DOJ) in response to a recent court ruling.
According to the update, the DOJ—acting on behalf of the Department of the Treasury—officially filed a notice of appeal against the district court’s order in Smith, et al. v. U.S. Department of the Treasury, et al., Case No. 6:24-cv-00336, in the Eastern District of Texas. The appeal challenges the ruling that has impacted the implementation of the CTA’s beneficial ownership information (BOI) reporting requirements.
In addition to filing the appeal, the DOJ also requested a stay of the court’s ruling during the appeal process. If the stay is granted, it would effectively reinstate the CTA’s requirements while the case continues through the judicial system. If the district court’s order is stayed, FinCEN has announced its intention to extend the BOI reporting deadline for all reporting companies by an additional 30 days. This extension is aimed at providing affected businesses with additional time to comply with reporting requirements should the CTA remain in effect.
FinCEN encourages all stakeholders, including business owners and compliance professionals, to stay informed about further developments by visiting its official website. The full update, along with additional resources and guidance on BOI reporting obligations, can be accessed here.
For businesses that wish to file voluntarily, Parasec offers BOI services to help ensure compliance with FinCEN’s regulations. To learn more about how Parasec can help your company navigate the BOI reporting process, go here.