We are following up on the latest developments regarding the Corporate Transparency Act (CTA) and its implications for beneficial ownership information (BOI) reporting. On December 23, 2024, a significant update came from the Fifth Circuit Court of Appeals, which granted a stay on a preliminary injunction that had previously suspended the CTA’s enforcement. This decision reinstates the obligation for reporting companies to submit beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). However, acknowledging the confusion caused by the temporary suspension, FinCEN has extended the filing deadlines to provide a grace period for compliance. Companies created or registered prior to January 1, 2024, now have until January 13, 2025, to file their initial reports, while those registered between December 3 and December 23, 2024, have an additional 21 days from their original deadline.

We will continue to monitor this development closely and provide updates as they become available. For clients concerned about the implications of this ruling on their business or estate planning, please feel free to contact us.

Sims & Campbell, LLC- Annapolis and Towson Estate Planning Attorneys