On February 18, 2025, a federal judge in the Eastern District of Texas lifted the preliminary injunction that was the last legal block to the Treasury Department’s Financial Crimes Enforcement Network’s (“FinCEN”) enforcement of the Corporate Transparency Act’s (“CTA”) reporting requirements.
The Department of Treasury announced a new filing deadline of March 21, 2025, which is applicable to companies that had reporting deadlines prior to the new deadline. Any company subject to a deadline that is later than March 21, 2025, will still be able to file up until that later deadline.
For a bit of background, the CTA, which took effect on January 1, 2024, attempts to hinder money laundering, tax fraud, terrorism financing, and other financial crimes through shell or front companies. It requires certain entities to report beneficial ownership information to the U.S. FinCEN.
The entities required to report under the CTA include corporations and LLCs, in addition to various other business entities created by filing a document with a secretary of state or any similar office under the law. There are twenty-three categories of entities that are exempt from the reporting requirement. Examples of entities that are not required include banks, credit unions, and tax-exempt entities registered with the IRS.
If you have questions regarding the CTA, please contact Joshua B. Beisker at 585-258-2879 or jbeisker@underbergkessler.com.