On December 3, 2024 a Federal court in Texas issued a preliminary injunction nationwide halting the enforcement of the Beneficial Ownership Reporting (“BOI”) provisions of the Corporate Transparency Act (“CTA”). The ruling states that reporting companies need not comply with the CTA.
FinCEN has yet to respond to the ruling and a challenge is expected. To be clear, this is a preliminary injunction (not permanent) and it could be reconsidered and reversed.
What this means:
- If you have not yet filed: You can hold off on filing your BOI report, regardless of when the entity was formed. However, you should be fully prepared to file quickly if the preliminary injunction is reversed, or the decision is appealed.
- If you have already filed: There is nothing you need to do at this time. If there is a change in your BOI information, you do not need to file an update report. However, you should track any changes so that you can update the report quickly if the decision is reversed.
Wiss will continue to monitor the ruling and FinCEN response and you should discuss your specific circumstances with your legal counsel.
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