As we continue to monitor the legal battle in the US over the enforceability of the Corporate Transparency Act’s reporting obligations, following is the most updated information and recommendations.
Current Status
On February 18, 2025, the U.S District Court of the Eastern District of Texas has lifted the last remaining nationwide injunction that prevented the U.S Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) from enforcing the beneficial ownership information (BOI) reporting obligations under the Corporate Transparency Act (CTA).
Following this decision, on February 19, 2025, FinCEN issued a notice extending the reporting deadline for most companies until March 21, 2025, while also indicating that further adjustments to this deadline or other CTA-related requirements may be forthcoming.
Background
on January 7, 2025, the U.S. District Court for the Eastern District of Texas issued an order staying FinCEN’s regulations implementing the BOI reporting requirements. The U.S. Department of Justice appealed the decision and requested a stay pending appeal. On February 18, 2025, the court granted the stay, effectively reinstating FinCEN’s authority to enforce BOI reporting.
This development follows a U.S. Supreme Court order lifting a similar injunction in a separate case, allowing FinCEN to resume enforcement while litigation continues. Initially, FinCEN refrained from acting due to another injunction imposed by the same district court in a different case. That injunction has now been lifted, and BOI reporting requirements is once again mandatory, subject to any further court rulings.
Updated Reporting Deadlines
In light of these developments, FinCEN has issued the following revised filing deadlines:
- For the vast majority of reporting companies (i.e., those formed before 2024, during 2024, and in 2025), the new deadline to file their CTA report is March 21, 2025.
- For reporting companies previously granted a later deadline, the original deadline remains in effect.
- Please review the latest FinCEN’s CTA landing page for further updates.
Next Steps & Compliance Considerations
With compliance deadlines reinstated, businesses and entities subject to the CTA’s BOI reporting obligations should take immediate steps to meet the March 21, 2025 deadline.
We strongly recommend to the Reporting companies that have not yet submitted their required filings to prioritize the preparation and submission of BOI reports to ensure compliance.
How We Can Assist
Our CTA team at APM & Co. has the expertise and experience to guide you through the complexities of the CTA. Whether you require strategic advice, assistance with preparing and submitting reports, or guidance on future compliance obligations, we are here to help.
This document is intended to provide only a general background regarding this matter.
This document should not be regarded as setting out binding legal advice but rather as a practical overview that is based on our understanding. APM & Co. is not licensed to practice law outside of Israel.
Contact Us
For assistance navigating the CTA, please feel free to contact your designated contact person at our office or reach out directly to Dr. Tal Tirosh at talt@apm.law. We would be delighted to assist you.
Our team is available to assist with any questions or guidance you may need.
