Reporting companies are once again required to file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN).

On February 18, 2025, the U.S. District Court for the Eastern District of Texas lifted the remaining injunction that prohibited FinCEN from enforcing the Corporate Transparency Act (CTA) in Smith v. U.S. Department of the Treasury. In light of this ruling, FinCEN announced that the new deadline for a vast majority of reporting companies to file their beneficial ownership information reports has been extended to March 21, 2025. FinCEN recognizes that reporting companies may need additional time to comply with their reporting obligations and stated that it will update reporting companies of any further changes to the deadline.

In addition to its announcement of the new filing deadline, FinCEN announced that it intends to initiate a process this year to revise the beneficial ownership information reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.

Fox Swibel will continue to monitor updates on CTA enforcement. If you have any questions about the CTA and this development, please contact David Morris ([email protected]) or Marcus Lind-Martinez ([email protected]). Thank you.

This article contains material of general interest and should not be construed as legal advice or a legal opinion on any specific facts or circumstances.  Under applicable rules of professional conduct, this content may be regarded as attorney advertising.