“Compliance with the CTA is now mandatory again. Please make sure you file your BOI filings by January 1, 2025.” -Shruti Gurudanti, Rose Law Group partner and director of corporate transactions
By Andy Medici | Phoenix Business Journal
Millions of small-business owners once again face a deadline to report ownership information to the Treasury Department as part of the Corporate Transparency Act.
The U.S. Court of Appeals for the Fifth Circuit has stayed the preliminary injunction that halted implementation of the rule, which requires businesses with fewer than 20 employees to provide names, dates of birth, addresses and other identifying information about its owners.
Read the full story from The Phoenix Business Journal.
Related:
Here’s what to know about the CTA and its Jan. 13 rule for small businesses to register with FinCEN
By Aimee Picchi | CBS News
An anti-money laundering law called the Corporate Transparency Act, or CTA, is now back in action after a Dec. 23 court ruling that will require millions of small business owners to register with the Financial Crimes Enforcement Network, or FinCEN, by mid-January, or potentially pay fines of up to $10,000.
The registration rule had been on hold since Dec. 3, when a federal court in Texas issued a preliminary injunction prohibiting its enforcement. But on Monday, the 5th U.S. Circuit Court of Appeals lifted the order, ruling that the decision is in the “public’s urgent interest in combating financial crime and protecting our country’s national security.”
The CTA requires that the owners and part-owners of an estimated 32.6 million small businesses must register personal information with FinCEN, such as a photo ID and home address, by Jan. 1. With the court ruling that enforcement can proceed, many small business owners may scramble to register ahead of deadline, although FinCEN said on Dec. 23 that it is extending the deadline until Jan. 13 due to the late December court ruling.
“Reporting companies that were created or registered prior to Jan. 1, 2024 have until Jan. 13, 2025 to file their initial beneficial ownership information reports with FinCEN,” the agency said in a statement. “These companies would otherwise have been required to report by Jan. 1, 2025.”
Some business associations say the extension still doesn’t give business owners enough time to meet the deadline.
“We are greatly concerned that a mere two-week extension does not provide enough time for millions of American businesses to comply with the law,” Mark Eisele, president of the National Cattlemen’s Beef Association, wrote to Treasury Secretary Janet Yellen in a Dec. 24 letter. “At minimum, we request Treasury provide a one-year delay to allow for greater education and outreach to small businesses across rural America.”
