Update: Corporate Transparency Act Reinstated With New March 21 Filing Deadline
February 26, 2025
After a rollercoaster of legal challenges and court decisions, the Corporate Transparency Act (CTA), a federal law requiring businesses to disclose ownership information in an effort to combat money laundering, tax fraud, drug trafficking, and terrorism financing is back on.
On February 18, 2025, the U.S. District Court for the Eastern District of Texas in Smith v. United States Department of the Treasury, reinstated the CTA and its implementing regulations, in light of the U.S. Supreme Court’s order in a separate challenge, McHenry v. Texas Top Cop Shop, Inc. This reinstatement means that all entities subject to the CTA are once again legally obligated to file their Beneficial Ownership Information (BOI) reports with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) by March 21, 2025, unless subject to a later deadline. Note, there is only a small subset of businesses with a later deadline, such as those qualifying for disaster relief extensions. Further, all newly formed nonexempt entities moving forward have 30 days from the date of formation to file their initial BOI reports.
Collins Hannafin, P.C. will continue to monitor any future developments regarding the CTA, but businesses and others impacted by the CTA should prepare and make every effort to meet the March 21 deadline.
Should you have any questions, please contact Attorney Geraldine B. Macaisa.
