BREAKING NEWS: Federal court stops enforcement of the CTA. What you need to know and do NOW!

Instructor: Elizabeth Soto

On December 3, 2024, a federal district court in Texas issued a sweeping nationwide preliminary injunction stopping enforcement of the Corporate Transparency Act (“CTA”).  The court’s decision temporarily blocks the U.S. Department of Treasury from enforcing the CTA’s beneficial ownership information (BOI) reporting requirements.  

Join the MIAMI REALTORS Legal Team for an important legal update on the Corporate Transparency Act and what you need to know and do now — CLICK HERE to register for the webinar on Tuesday, December 17, 2024, at 2:00 PM ET. Submit questions ahead of time HERE.

WHAT TO DO NOW IF YOU HAVE NOT YET FILED YOUR BOI REPORT?

• WAIT AND SEE.  While reporting companies are currently not required to comply with the filing requirement under the CTA due to the federal court’s nationwide preliminary injunction, you should be aware that further court decisions can reinstate the CTA’s enforceability.

• PREPARE AND HOLD THE BOI REPORT WHILE YOU MONITOR THE LITIGATION.  At this time, reporting companies who have not yet filed their BOI reports with FinCEN, can delay filing their reports.  However, if the preliminary injunction is overturned on appeal, reporting companies will need to act expeditiously to meet reporting deadlines.

• FILE NOW.  FinCEN continues accepting BOI reports, so you still have the option of voluntarily filing your BOI report despite the court’s preliminary injunction.

WHAT TO DO IF YOU ALREADY FILED YOUR BENEFICIAL OWNERSHIP INFORMATION REPORT?

• If you have already filed your BOI Report, no action is required.

• Stay up-to-date on litigation outcomes so you know whether you need to file any future updates to your BOI report based on changes to your reporting company or to correct any errors.

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