Corporate Transparency Act: Filing deadline postponed

On December 3, a Texas federal district court preliminarily barred enforcement of the Corporate Transparency Act nationwide — the broad decision came weeks before the January 1, 2025, deadline for 32.6 million business entities to report their beneficial ownership information ("BOI"). (Texas Top Cop Shop, Inc., v. Garland, 2024 WL 4953814; E.D. Tex. 12/03/2024)

The filing deadline was originally January 1, 2025 but the American Institute of CPAs is lobbying for a year's delay of enforcement. No immediate action is required for businesses, but they can still file if they wish to. 

Filing can be performed online and takes around 20 minutes. There are 23 entity types that are exempt from reporting, including:

• Investment Advisors
• Insurance Brokers
• Large Companies - $5,000,000 revenue and 20FT employees
• Nonprofits
• Inactive companies formed prior to 2020
• 18 more tied to regulated type industries

Background:

"Congress passed the Corporate Transparency Act in 2021 with the intention of combating money-laundering, financing of terrorist activities, and tax evasion. It requires that specified business entities file reports detailing their owners, officers, and other control persons with Treasury’s Financial Crimes Enforcement Network (FinCEN). A September 2022 final rule implementing the act set the reporting deadline for most entities at January 1, 2025." - via thomsonreuters.com