BOI Report Filing and the Corporate Transparency Act (CTA)

Overview

The Corporate Transparency Act (CTA) requires businesses to file Beneficial Ownership Information (BOI) reports.
A recent Texas Court order has paused the enforcement of the CTA, raising questions about whether businesses must file BOI reports.

FinCEN (Financial Crimes Enforcement Network) is the agency responsible for enforcing BOI reporting.
As a response to the Texas Court order:
- FinCEN states that businesses are not currently required to file BOI reports.
- No penalties will be imposed on businesses for not filing while the order is in effect.
- Filing remains voluntary during this period.

The Department of Treasury is appealing the Texas Court order, asserting that the CTA is constitutional.
Other district courts, like those in Virginia and Oregon, have upheld the CTA's constitutionality.
The Texas case referred to as the Texas Top Cop Shop has challenged the CTA.
- This case resulted in a negative ruling for the Department of Treasury, suggesting the CTA might be unconstitutional.
- The case is still under appeal, indicating ongoing litigation.

Businesses should prepare to file BOI reports quickly if the injunction is lifted.
Gather all necessary information and resources in advance.

At present, reporting is voluntary, and businesses are not liable for non-filing during the injunction.
Stay informed on developments as court proceedings continue.

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