Ag News
Corporate Transparency Act on hold for now
Posted on Jan 14, 2025 at 11:02 AM
The Corporate Transparency Act (CTA) of 2021was set to go into effect on Jan. 1. After a back-and-forth series of December court decisions, the law’s reporting requirements are halted.
The CTA requires most U.S. businesses to file a beneficial ownership information (BOI) report providing details on individuals who owned portions of the businesses or held decision-making authority over them. The law imposes heavy penalties, up to and including jail time, on those who fail to report.
On Dec. 3, 2024, a federal district court issued a nationwide injunction to prevent implementation of the CTA, putting a key Jan. 1, 2025, deadline on hold. On December 23, a panel of judges on the Fifth Circuit Court of Appeals overturned that injunction, finding that the reporting law was likely constitutional.
On Dec. 26, a different panel of Fifth Circuit judges reversed the previous ruling and reinstated the nationwide injunction. The entire Fifth Circuit will hear the case on March 25. The U.S. Department of Justice has asked the Supreme Court to review the nationwide injunction, though it is not clear if or when the Supreme Court will do so.
The law was intended to combat money laundering by criminal enterprises. For GFB’s coverage of what the law would require if enforced, click here.
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