As promised, we have continued to monitor the injunction regarding the Corporate Transparency Act (“CTA”). Unfortunately, beneficial ownership information reporting (“BOIR”) requirements under the CTA are once again back in effect as of February 18th, 2025, due to the decision by the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.). The Financial Crimes Enforcement Network (“FinCEN”) has announced that all BOIRs must be filed by Friday, March 21st, 2025.
The CTA requires certain types of U.S. and foreign entities to report beneficial ownership to FinCEN. This includes LLCs, corporations, and limited partnerships. There are a few exemptions from BOIR requirements. For a list of exemptions, please see Section L of the FinCEN FAQs page, “Reporting Company Exemptions.”
Trusts are generally not filed with a state government and thus are generally not reporting companies. Any trust created by McCullough Law does not require a BOIR to be filed.
The following are resources we highly recommend you review prior to completing any filings.
Filings can be completed on the FinCEN website. Once filed, please send the completed filings to records@mlutah.com.
Failure to meet the reporting deadlines and requirements can result in severe civil and criminal penalties including but not limited to $591/day (indexed for inflation) per entity and two years in prison.
We wish we had better news to provide at this time and understand this has been and may continue to be an arduous and frustrating legal process.
Please reach out to our CTA team at either CTA@mlutah.com or (385) 317-0228 with any questions.
