By admin 
The Treasury Department’s Financial Crimes Enforcement Network has extended the deadline for reporting beneficial ownership information after an order against it was lifted by a federal appeals court.
On Monday, the U.S. Court of Appeals for the Fifth Circuit granted a stay of a preliminary injunction by a federal district court in Texas that had temporarily suspended a requirement for filing BOI reports with FinCEN under the Corporate Transparency Act of 2019 in the case of Texas Top Cop Shop Inc. against Garland. That means most businesses are once again subject to the requirement to report their true owners to FinCEN, with the exception of members of the National Small Business Association, which won an earlier lawsuit over the requirement. The law aims to deter criminals from using shell companies for illegal purposes, such as money laundering and terrorist financing.
However, after all the legal back and forth, the Treasury Department announced an extension of time for companies to file to meet the reporting deadline. Reporting companies incorporated or registered before January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have to report by January 1, 2025.)
Reporting companies incorporated or registered in the US on or after September 4, 2024 and that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their original beneficial ownership information reports with FinCEN.
Reporting companies incorporated or registered in the U.S. on or after December 3, 2024 and on or before December 23, 2024 will have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports.
Reporting companies eligible for disaster relief may have extended deadlines beyond January 13, 2025. These companies must adhere to the later deadline.
Reporting companies incorporated or registered in the U.S. on or after January 1, 2025 will have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice of their incorporation or registration is effective.
FinCEN did note the exception for members of the NSBA: “As indicated in the alert entitled”Notice regarding National Small Business United v. Yellen, No. 5:22-cv-01448 (ND Ala.)“Plaintiffs in National Small Business United v. YellenNo. 5:22-cv-01448 (ND Ala.) — namely Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1 2024) – are currently not required to report their beneficial ownership information to FinCEN.”
FinCEN also provided some background on the lawsuit, pointing out that Tuesday, December 3, 2024 in the case of Texas Top Cop Shop Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (ED Tex.), the United States District Court for the Eastern District of Texas, Sherman Division, entered an order granting a nationwide preliminary injunction. On December 23, 2024, the United States Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction enforcing the Corporate Transparency Act enacted in the case of Texas Top Cop Shop Inc. against Garlandpending the outcome of the Treasury Department’s ongoing appeal against the district court order. It was pointed out that the Texas Top Cop Store The case is just one of many challenging the CTA and pending in courts across the country. Several district courts have denied requests to impose the CTA, ruling in favor of the Treasury Department.
“The government continues to believe – consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon – that the CTA is constitutional,” FinCEN said. “Therefore, on December 5, 2024, the Department of Justice, on behalf of the Treasury Department, filed a notice of appeal and separately requested a stay of the order pending that appeal to the district court and the United States Court of Justice. Appeal to the Fifth Circuit.”
However, that could change next year when the Trump administration takes office, given the deregulation that newly-elected President Trump promised during his campaign.
The American Institute of CPAs has called for an extension of the reporting deadline. A provision for delaying the deadline was included in one of the continuing resolutions last week to keep the government open, but the version ultimately passed in Congress this weekend left it out.