CTA – Update

Following last week’s enjoinment of the Corporate Transparency Act (CTA), the Financial Crimes Enforcement Network (FinCEN) has announced that 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. Reporting companies may, however, continue to voluntarily submit beneficial ownership information reports should they so desire.

Why This Matters: While the litigation is ongoing, FinCEN has stated it will comply with the federal court order for as long as it remains in effect, and compliance with the January 1, 2025 deadline proscribed in the CTA is not required.

As always, we will continue to review and monitor the situation and keep you apprised of the latest developments. Please feel free to reach out to us in the meantime if you have any questions.

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