Important Update on the FinCEN Report

[Karen Schimpf]

Here’s the latest information regarding the CTA and its current status:

• *A Texas District Court has issued a preliminary injunction that halts enforcement of the CTA.
• *The Department of Justice has appealed the ruling, as FinCEN continues to assert the constitutionality of the CTA.
• *On December 12, 2024, the Department of Justice filed a motion to stay the preliminary injunction pending appeal with the 5th
•   Circuit Court.

What Should You Do?

These developments have introduced significant uncertainty, but here’s what experts recommend:

• *Prepare to file: Deadlines could resume with little notice, so it’s best to be ready.
• *Communicate with stakeholders: Filing is currently voluntary, so keep clients and team members informed.
• *Stay informed: Monitor legal updates closely to ensure you’re prepared to act.

What Does This Mean for You?

While the court order has temporarily paused the requirement to file Beneficial Ownership Information (BOI), this may not be permanent. If the order is overturned, late filing penalties—up to $591 per day—could apply.

FinCEN Guidance: Currently, reporting companies are not required to file BOI reports but may do so voluntarily. Acting now can help you avoid potential fines and last-minute scrambling if requirements are reinstated.

FileForms is here to support you every step of the way. Stay proactive, stay prepared, and file to be safe!

Karen

Give us a call today to discuss your commercial finance needs!

Karen Schimpf

(512) 358-1511

karen@applycommercialloans.com

www.ApplyCommercialLoans.com