Alerts
Court Ruling Reinstates Corporate Transparency Act Enforcement; Filing Deadlines Now Set
Feb 25 2025
On February 18, 2025, the nationwide injunction against enforcing the Corporate Transparency Act (CTA) was “stayed” by Eastern District Court Judge Jeremy Kernodle (citing the Supreme Court’s ruling in Texas Top Cop Shop), and FinCEN has stated (in a February 18, 2025 notice) that the deadline for most reporting companies to make required filings is now March 21, 2025. Although FinCEN did not explicitly so state, it appears the March 21, 2025 deadline applies to reporting companies formed or registered between January 1, 2024 and February 17, 2025. Reporting companies formed or registered on or after February 18, 2025, must file within 30 days from the date of creation or registration.
In its notice, FinCEN stated that, during the next 30 days, it “will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks. FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.”
The government is not expected to appeal Judge Kernodle’s ruling. The next ruling that could alter the status quo (absent legislation, executive order, or new FinCEN rule) is likely to be following the oral arguments scheduled to occur on March 25, 2025 in the Texas Cop Shop case.
You can view our prior alert covering the CTA reporting obligations here, as well as a full catalog of updates and industry specific alerts in connection with the CTA available here. Should you have any questions about the CTA and how it could affect your company, reach out to any of the authors of this alert or your relationship attorney at Womble Bond Dickinson (US) LLP.
