The Fifth Circuit Court of Appeals has reversed a temporary injunction against the Corporate Transparency Act (CTA). This means changes for Small Business.
UPDATE | Hours after the nationwide beneficial ownership information (BOI) reporting injunction was rescinded, FinCEN extended a number of Corporate Transparency Act (CTA) reporting deadlines.
You read that right: at this time, CTA BOI reporting requirements are back on for Small-Business owners who were not part of NSBA’s membership on or before March 1, 2024.
Per FinCEN's extensions, non-NSBA member companies formed before 2024 - with a January 1, 2025, reporting deadline - now have until January 13, 2025, to comply with BOI reporting requirements due under the CTA.
Non-NSBA member companies created or registered on or after December 3, 2024, and after, and entities formed before December 23, 2024, have an additional 21 days to file.
While the nationwide injunction over the CTA has been rescinded, NSBA’s separate case over this unconstitutional law remains pending, with the original exemption for certain NSBA members still in place.
NSBA is closely tracking this important matter that carries significant fines and includes the possibility of prison time for compliance failures.
As significant as these penalties are, even with the short deadline extension from FinCEN, chaos coming from the administrating authorities of the CTA are a continued source of confusion regarding compliance among the Small-Business community, and these issues should be remedied immediately.
Follow NSBA as we continue working to fully repeal the CTA.
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FOR IMMEDIATE RELEASE
Monday, Dec. 23, 2024
Contact:
Molly Day
202-552-2904
Temporary CTA Injunction Reversed by Federal Appeals Court
Washington, D.C. – Earlier today—just hours before most of the country goes on holiday—the Fifth Circuit Court of Appeals reversed its temporary injunction against the CTA. This means that, unless a small business was a member of NSBA as of March 1, 2024, they WILL be required to file Beneficial Ownership Reports (BOI) by Jan. 1. 2025.
Below is a statement from NSBA President and CEO Todd McCracken.
“This unwelcome roller-coaster ride couldn’t come at a worse time for America’s small businesses. Unfortunately, because the Court agreed to hear the expedited appeal in their case, the ruling came quick, reversing the few weeks of relief America’s small-business owners thought they had.
“This most recent setback comes on the back of Congress’ failure to include language to delay the CTA in its final stopgap spending bill passed late last week. Within the span of a week, small-business owners thought they had at least a few extra weeks to comply, then they thought they had a full year, now it’s just ONE week.
“This uncertainty is beyond frustrating for NSBA’s members and the millions of small businesses we represent. Since the beginning, NSBA has warned against the CTA which could force well-intending small businesses to pay fines up to $591 per DAY and up to two years of jail time.
“And now, lawmakers and the courts are effectively giving those small businesses ONE WEEK to avoid these massive fines and potential jail time. It is unconscionable.
“NSBA will continue to fight. We will not go quietly; we will push for the unconstitutional CTA to be overturned through our lawsuit and repealed by Congress. It’s what America’s small businesses deserve.”
Click here for NSBA’s CTA Resource page.
Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.
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