Corporate Transparency Act – Update: December 9, 2024

Treasury acknowledges effect of preliminary injunction and stay of filing “while the order remains in place.”

On December 9, 2024, Treasury (FINCEN) acknowledged the injunction, noting that the government had appealed, and made the following statement:

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

The notice is posted here – https://www.fincen.gov/boi 

What the Treasury announcement does not say is whether or to what extent there will be a grace period to file should the grant of the preliminary injunction be reversed.  Accordingly, our advice would be to voluntarily file any required reports at some point prior to resolution of the pending litigation in order to avoid any concerns about compliance if the injunction is reversed.

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