Court Rules in Favor of Reporting Requirements

The Corporate Transparency Act’s (CTA) reporting requirements are back in effect after the U.S. District Court for the Eastern District of Texas ruled in favor of the U.S. Department of the Treasury yesterday.

Following the ruling, the Financial Crimes Enforcement Network (FinCEN) reinstated the requirement for companies to report beneficial ownership information (BOI), with a new deadline of March 21, 2025, for most businesses.

FinCEN is also considering further adjustments to deadlines and will prioritize reporting for entities that pose the highest national security risks. Additionally, it plans to revise the BOI reporting rule to reduce compliance burdens, particularly for lower-risk entities and small businesses. Read more in the official FinCEN notice.

In addition, bipartisan legislation that would delay filing until the end of the year recently passed the House, and a companion bill was introduced in the Senate by Senate Banking Committee Chair Tim Scott (R-SC).