This July, Carolyn Wood, one of our legal assistants, attorney Ed Boucher, his son, Noah and other supporters participated in the Motor City Mile Open Water Swim hosted by Swim Across America. Supporters and swimmers came together to raise funds for SAA’s beneficiary, the University of Michigan Rogel Cancer Center.
We are honored to have sponsored this transformative event and are proud of everyone who represented our firm. Together, support for Swim Across America can help make waves as the organization aims to innovate cancer research, clinical trials and patient programs.
On Monday, December 23rd, a federal appeals court issued a ruling reinstating reporting requirements under the Corporate Transparency Act (“CTA”), with the Treasury Department’s FinCEN extending key deadlines to accommodate the recent legal uncertainty.
On Tuesday, December 3rd, 2024, the US District Court for the Eastern District of Texas issued an order specifically prohibiting the federal government’s enforcement of the Corporate Transparency Act (CTA), which was enacted January 1st, 2024.
The Act requires all applicable US companies (estimated at approximately 32.5 million, as of January 1st, 2024) to provide the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) with in-depth, wide-reaching information regarding the company’s ownership and individuals who directly benefit from the company’s operations. Before the order to halt enforcement, the deadline for existing companies to submit their “beneficial owners information” (BOI) to FinCEN was January 1st, 2025.
The Texas Court was the second to rule against the CTA’s constitutionality, while three other courts across the country have ruled in favor of the Act’s constitutionality and implementation. In their ruling, the Court noted the substantial, irreparable harm that would befall the companies the Act applied to, specifically informing applicable companies that they would not need to submit information by the Act’s January 1st, 2025 reporting deadline.
While this injunction is not permanent and FinCEN still allows companies to submit their BOI information, Kotz Sangster will suspend filings for companies until the injunction is overturned on appeal. We will continue to keep our clients informed regarding future implementation of the CTA as the situation continues to evolve.
