This weekend, the Financial Crimes Enforcement Network (FinCEN) released a statement about the nationwide preliminary injunction that is temporarily stopping the enforcement of the Corporate Transparency Act (CTA). A recent federal district court order has paused the requirements to report beneficial ownership information (BOI), which went into effect on January 1, 2024. As a result, companies are currently not obligated to submit their beneficial ownership information to FinCEN and will not face penalties for failing to do so while this preliminary injunction is in place. It is crucial to note that this court decision could either be upheld or reversed in future legal proceedings.
Although the CTA and BOI reporting mandates are currently suspended, businesses that haven’t yet submitted their information to FinCEN have a decision to make:
File: Businesses can still voluntarily submit their BOI reports to FinCEN. Parasec will continue to assist clients who elect to proceed with filing a BOI report.
Wait: Alternatively, businesses may opt not to submit their BOI report and instead wait for additional legal updates. If companies decide to wait, we recommend that they prepare to meet the requirements in case the injunction is lifted.
Parasec will continue to monitor this decision and will provide updates as they are made available.