Corporate Transparency Act (“CTA”) Back in Effect
On February 17, 2025 a federal judge in Texas lifted a preliminary injunction that had stopped enforcement of the of the Corporate Transparency Act (“CTA”). As a result, CTA reporting obligations are once again in effect.
On February 18, 2025 the Financial Crimes Enforcement Network (FinCEN) issued a statement alerting reporting companies to a new reporting deadline of March 21, 2025, which may be subject to further modification.
In its request to lift the injunction, the Treasury Department stated FinCEN might review and potentially revise the reporting rules for “low-risk entities.” However, at this time there are currently no details on what that could mean for CTA reporting.
Given this most recent decision, FJGG recommends companies that have not yet filed their beneficial ownership information begin preparations to do so by FinCEN’s extended deadline of March 21, 2025.
The information provided herein is not intended to provide legal advice to the reader. CTA compliance is extremely fact intensive and varies depending on the specific circumstance. If you have questions or require assistance in complying with the CTA, please contact [email protected] for more information.
Additional information, past updates, and specifics about CTA reporting requirements can be found on our website here.
