The Corporate Transparency Act (CTA), designed to increase corporate ownership transparency and prevent financial crimes, recently faced a legal hurdle. On December 3, 2024, a U.S. District Court in Texas issued a nationwide injunction, temporarily pausing the enforcement of the CTA’s reporting requirements.

The court raised constitutional concerns about whether Congress exceeded its authority in passing the CTA. However, following an appeal by the U.S. Department of Justice, the Fifth Circuit Court of Appeals lifted the injunction on December 23, 2024, clearing the way for FinCEN to resume enforcement.

Now, all qualifying businesses must file their Beneficial Ownership Information (BOI) with FinCEN by January 13, 2024. Non-compliance can result in $500 daily penalties and potential criminal consequences.

For businesses navigating this requirement:

• Use Counsel Club’s QuickCheck Tool to determine if your company qualifies for an exemption.

• If filing is required, the BOI Filing Tool ensures secure, encrypted submissions directly to FinCEN.

The deadline is fast approaching. Don’t delay—ensure compliance now.