The U.S. Department of Justice and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) have notified the U.S. District Court of Northern Alabama that they will appeal the court’s March 1, 2024, ruling that the Corporate Transparency Act (CTA) is unconstitutional.
The court ruled in favor of a lawsuit by a business organization, the National Small Business Association, alleging the CTA – which requires more than 32 million small businesses to disclose identifying information about their owners and key employees to the government – is unconstitutional. However, for now, the ruling only applies to the 65,000 members of the NSBA.
Beneficial Ownership Information (BOI)
If your company is covered by the CTA’s Beneficial Owner Information reporting requirement – and you are not a member of the NSBA – you must comply with the law. If your company was in existence before January 1, 2024, you have until December 31, 2024, to make your first BOI report to FinCEN. If your company was created after January 1, 2024, you have 90 days from the date of registration to comply.
More information is available at FinCEN’s Beneficial Ownership Information web page.
We will keep you informed
We will keep you informed as the legal challenge to the CTA moves forward. In the meantime, if you have questions about your company’s obligation to report BOI data to FinCEN, contact your GT Reilly advisor.
