Corporate Transparency Act (CTA) Beneficial Ownership Reporting is Back for the Time Being

By Gordon W. Prince, Esq.

On February 18, a federal court lifted the remaining injunction blocking enforcement of the Corporate Transparency Act (“CTA”), previously discussed in our prior alerts. In response, the Financial Crimes Enforcement Network (“FinCEN”), the entity charged with implementing and enforcing the CTA, has issued a notice stating that the reporting deadline for most existing companies that have yet to comply with CTA requirements is extended to March 21, 2025.

There do appear to be more updates and changes ahead, as the notice from FinCEN states that, during this extended deadline period, “FinCEN will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks. FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.”

Additionally, a bill has been passed by the House of Representatives extending the deadline to comply with the CTA and now sits with the Senate.

As of this alert, reporting companies should prepare to file by their deadline (March 21, 2025 for most companies), but should keep an eye out for future updates.

Attorney Gordon W. Prince is a member of the Business Law Department at Gawthrop Greenwood, PC, where he focuses his practice on business and corporate law, contracts, financing and secured transactions. He was named to Best Lawyers^®: Ones to Watch, Super Lawyers Rising Star, as well as Top Lawyers in Main Line Today and the Daily Local News. For more information, contact Gordon at gprince@gawthrop.com or 610-696-8225.