January 1 Deadline is Reinstated for CTA BOI FILINGS
Monday, December 23, 2024 - Unfortunately, the Fifth Circuit Court of Appeals just reinstated the January 1, 2025 deadline for BOI Filings under the Corporate Transparency Act. Click here for the court’s order for reference.
In a somewhat surprising move, the Fifth Circuit granted the Department of Justice’s request to stay (or stop) the preliminary injunction that was pausing the CTA’s implementation. Therefore, the bottom line – for today – is that Beneficial Ownership Information (“BOI”) filings are once again due by the end of this year. Everyone who has not filed yet is back on the original deadline.
As a reminder, back in December 2020, Congress passed the Corporate Transparency Act (CTA) as part of the National Defense Authorization Act (NDAA) that created a federal framework for reporting, storing, and disclosing Beneficial Ownership Information (BOI) of “reporting companies.” The CTA requires most small businesses in the United States to make a filing with the Financial Crimes Enforcement Network.
EMA partnered with Wolters Kluwer earlier this year to prepare marketers to file through BizFilings’ BOI reporting tool which reduces filing times and errors through a streamlined, secure and automated workflow. BizFilings offers EMA member companies a 12 percent discount off BOI report filings. The discount can be accessed via a dedicated EMA-member landing page below.
Looking ahead…
The pro-business plaintiffs in the case may next petition the Fifth Circuit to rehear the matter en banc. The term “en banc” refers to a special judicial procedure where all judges of a particular court can hear the case because its importance or complexity. There is a chance that such a petition could be successful and reinstitute the stay, but that is impossible to predict as of the date of this alert. Further, it is yet to be seen how a new administration under President Trump will handle the CTA – but the new administration does not take charge until January 20, 2025, well after the end-of-year deadline. And Congress is now on break until January 3, 2025 – having not touched the CTA in its most recent Continuing Resolution which funded the government through March 14, 2025. Bottom line: EMA encourages its members to get this done by December 31, 2024.
If anything changes, EMA will be the first to let you know.
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