The Corporate Transparency Act (CTA), effective January 1, 2024, requires many companies to report information to FinCEN, excluding certain entities such as trusts, charities, and 23 other exemptions. The full list of exemptions is detailed in Chapter 1.2 of FinCEN's Small Entity Compliance Guide.
A U.S. District Court in Texas has issued a nationwide preliminary injunction against enforcing the CTA and its reporting rules, citing likely unconstitutionality. This suspends the January 1, 2025, reporting deadline for now. Other courts are addressing the CTA’s constitutionality, and the matter may ultimately be decided by the Supreme Court.
Entities that have already filed need take no further action. Those with pending filings should monitor developments and be prepared to comply if the injunction is lifted. Further updates will follow as new information becomes available.
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