Business owners have struggled to understand the newly implemented reporting requirements under the Corporate Transparency Act (CTA), more specifically known as Beneficial Ownership Information Reports (BOIRs). These reporting requirements are arduous and have stiff penalties for noncompliance. As business counsel for various types of entities, we have worked closely with our clients to navigate these newly implemented stringent reporting requirements. However, for those business owners who have not filed their BOIR yet, have no idea what we are talking about, or still unsure of the requirements, will be relieved by a court’s recent ruling out of the Eastern District of Texas.
To briefly summarize the ruling, the Court enjoined (i.e. stopped) FinCEN, a bureau of the Department of the Treasury, from enforcing the Corporate Transparency Act (CTA), the recent law requiring most entities to submit BOIRs annually with unreasonably stiff penalties for noncompliance.
What does this ruling mean for Texas business owners? The injunction means that FinCEN may not require filing and may not enforce penalties for noncompliance while the injunction is in place. While the CTA and BOIR filing requirements have not been repealed, entities who have not yet filed a BOIR may not face penalties for noncompliance while the injunction is in place. Business owners may still elect to comply with the current CTA requirements although not required to do so while the injunction is in place. We’ve included a link for those companies wanting to move forward with submitting their BOIR through FinCEN’s
If you have any questions about the recent ruling, CTA, or BOIR filing requirements, please don’t hesitate to reach out to our firm, and one of our attorneys will be happy to assist you. All inquiries may be submitted by e-mail to info@bwmpc.com or by phone to (281) 904-8323.
You can read the full text of the Court’s order HERE.