On December 3, 2024, the 5th U.S. District Court issued a decision that the “Corporate Transparency Act (CTA)” is likely unconstitutional. This decision includes an injunction, which applies nationally, prohibiting the enforcement of the CTA and its “Beneficial Ownership Interests (BOI)” reporting requirement.
Under the injunction, the U.S. Treasury’s Financial Crimes Enforcement Network (FINCEN) is barred from enforcing the BOI filing requirements while the case is pending. On December 5, 2024, the U.S. Department of Justice appealed this decision. FINCEN then responded that, while the injunction remains in effect, reporting companies are not required to file BOI Reports, and penalties will not be applied for failure to file BOI reports. However, reporting companies may voluntarily continue to submit BOI reports.
Please contact your Tronconi Segarra & Associates advisor if you have questions regarding this important matter.
