by Kent A. Brasseale, II and Heather M. Lobermann
On February 18, 2025 the U.S. District Court for the Eastern District of Texas issued a ruling in Smith, et.al. v. U.S. Department of the Treasury reinstating the filing requirements under the Corporate Transparency Act. This means that BOI reporting under the CTA is again required.
When are Filings Due?
Most business entities are now required to file no later than March 21, 2025. For entities previously granted an extended filing deadline, the later date will still apply.
Are Any Entities Still Exempt from Filing?
Certain entities are exempt from the filing requirements under the Corporate Transparency Act, however, all other “reporting companies” who do not qualify for one of the twenty-three exemption categories must file. There is also an exemption for certain members of the National Small Business Association who are plaintiffs in the pending case National Small Business Association v. Yellen.
How to Report Under the CTA
An electronic filing system has been implemented by FinCEN. Be wary of fake websites that pose as the FinCEN reporting site, as highly confidential information must be uploaded as part of the filing, such as EINs, social security numbers, and driver’s licenses. In addition, while the filing can initially seem straightforward, there are many complexities in determining who qualifies as a “beneficial owner”, exemptions, as well as the information to report depending on the date of an entity’s formation. Working with a professional experienced in the nuances of the CTA and filing requirements can be valuable in protecting an entity from incorrect filings.
How Can KDDK Help?
Contact attorneys Kent (“KAB”) Brasseale, II at kbrasseale@kddk.com or Heather Lobermann at hlobermann@kddk.com, or by phone at (812) 423-3183, for questions and assistance regarding the CTA.
Where to Read More about the Corporate Transparency Act?
KDDK has written numerous articles on the Corporate Transparency Act and its evolution as it progressed through the courts:
- Corporate Transparency Act: What Your Business Needs to Know
- Corporate Transparency Act and Reporting Rule Enjoined Nationwide
- Urgent Update: Corporate Transparency Act Nationwide Injunction Lifted – Reporting Required as Early as January 13, 2025
- Corporate Transparency Act Nationwide Injunction Reinstated
- Understanding the Status of the Corporate Transparency Act – U.S. Supreme Court Issues Decision on January 23, 2025
- Litigation Update – Corporate Transparency Act
