Corporate Transparency Act BOI Reporting Re-Suspended on Constitutional Grounds
On December 26, 2024, a federal appellate court reversed its own December 23 ruling and reinstated a lower Texas court’s nationwide suspension of Beneficial Ownership Information/BOI reporting under the Corporate Transparency Act on Constitutional grounds. BOI compliance is not required until the court takes further action, which we do not expect until March 2025 at the earliest.
Without regard to the outcome of the Texas litigation, independent extensions also remain in force for hurricane-affected businesses with principal locations in areas eligible for both FEMA relief and IRS tax relief. Under these FinCEN orders, qualifying entities existing before January 1, 2024, and some entities formed during 2024 have until June 1, 2025, to file.
For more information about the Corporate Transparency Act, please read our prior summaries here:
Corporate Transparency Act Beneficial Ownership Reporting Suspended, Held Likely Unconstitutional
Ensuring Compliance With The Corporate Transparency Act
Corporate Transparency Act Blog Series (Part 1) – The Corporate Transparency Acts Implications