CLIENT ALERT: Corporate Transparency Act

In the ever-changing landscape of the Corporate Transparency Act (“CTA”) and its enforcement (or lack thereof), here are the latest developments as of February 6, 2025:

The Trump Administration recently filed its first brief in one of the cases in which an injunction was entered prohibiting the enforcement of the CTA.  The brief appears to indicate the Trump Administration’s belief that the CTA is constitutional and should be enforceable.  The brief echoes many of the legal arguments raised by the Biden Administration in support of the CTA.

Notwithstanding the current administration’s apparent support for the CTA, the Financial Crimes Enforcement Network (“FinCEN”) is maintaining its position that reporting companies are not required to file BOI reports at this time.  Reporting companies will not be subject to liability for failing to filing BOI reports while the injunctions remain in place.  Reporting companies can, however, voluntarily submit BOI reports if desired.  FinCEN announced that if and when the injunctions are lifted, reporting companies will have 30 days to file their BOI report.

Further, FinCEN also indicated it is considering modifying the reporting requirements “for lower-risk entities, including many U.S. small businesses.”  Only time will tell what, if anything, this means.

If you have questions or concerns regarding the Corporate Transparency Act and its impact on your company, we are available to address any such questions.

*** The foregoing is provided for informational purposes only and does not represent a full analysis of the matters presented.  The foregoing may not be relied upon as legal advice. ***