TerriS6 (California)
Posts: 3,270
Posts: 3,270
Posted:
MORE BREAKING NEWS
About the Corporate Transparency Act
On December 26, the Fifth Circuit Court of Appeals reversed its December 23 Order, and the injunction enjoining enforcement of the Corporate Transparency Act (CTA) is back on. As of now, the reporting requirement is once again “on hold” and reporting companies are not required to file their Beneficial Ownership Information Reports (BOIR).
While it feels like the court keeps changing its mind and giving us all a bit of post-holiday whiplash, the December 23rd ruling was the “motions panel” of the court responding to the government’s motion. This new ruling is from the “merits panel” which made this new ruling to “preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.” The court is expediting the government’s appeal.
This is still not a final ruling on whether the CTA is constitutional, but for now the filing requirement is off.
For those Boards that elect to file the BOIR (even though it is currently optional), they can be filed at https://boiefiling.fincen.gov/.
The next ruling is likely to be final. If the filing requirement is reinstated, the potential penalties for non-compliance can be harsh. Compliance is not only required by law, but also something that needs to be taken seriously since insurance may not cover non-compliance costs and defense. Stay tuned as this remains a developing story and issue.
About the Corporate Transparency Act
On December 26, the Fifth Circuit Court of Appeals reversed its December 23 Order, and the injunction enjoining enforcement of the Corporate Transparency Act (CTA) is back on. As of now, the reporting requirement is once again “on hold” and reporting companies are not required to file their Beneficial Ownership Information Reports (BOIR).
While it feels like the court keeps changing its mind and giving us all a bit of post-holiday whiplash, the December 23rd ruling was the “motions panel” of the court responding to the government’s motion. This new ruling is from the “merits panel” which made this new ruling to “preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.” The court is expediting the government’s appeal.
This is still not a final ruling on whether the CTA is constitutional, but for now the filing requirement is off.
For those Boards that elect to file the BOIR (even though it is currently optional), they can be filed at https://boiefiling.fincen.gov/.
The next ruling is likely to be final. If the filing requirement is reinstated, the potential penalties for non-compliance can be harsh. Compliance is not only required by law, but also something that needs to be taken seriously since insurance may not cover non-compliance costs and defense. Stay tuned as this remains a developing story and issue.