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Author: Admin | 2025-04-28
Alert on this case.) Notably, FinCEN stated that it will “assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks.” FinCEN further stated that it “intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.”Background and recent developments regarding the CTASigned into law by former President Joe Biden in 2021, the CTA requires non-exempt[1] companies (reporting companies) to report their BOI to FinCEN, subject to fines and penalties. President Donald Trump vetoed the CTA near the end of his first term, but his veto was overridden by Congress as the CTA was included in the National Defense Authorization Act. In the CTA as enacted, non-exempt companies created or registered in any US state prior to January 1, 2024 were to report their BOI to FinCEN by January 1, 2025, subject to potential fines and/or penalties. (For more detailed information about the CTA’s provisions, see our prior alert or contact the CTA working group or your relationship partner.)Several plaintiffs – mostly private businesses or organizations representing their interests – have filed lawsuits in various courts arguing that the CTA is unconstitutional. In National Small Business United v. Yellen, the US District Court for the Northern District of Alabama ruled that the CTA is unconstitutional and granted an injunction barring the government from enforcing the CTA against the plaintiffs in that case. In two cases in the US District Court for the Eastern District of Texas – Smith v. US Dept. of the Treasury and Texas Top Cop Shop, Inc. v. McHenry – judges issued nationwide temporary injunctions barring or suspending the government’s enforcement of the CTA. The government appealed the rulings and sought stays during the
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