The Corporate Transparency Act (CTA), which officially took effect on January 1, 2024, was designed to crack down on financial crimes like money laundering and tax evasion by requiring businesses to file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN). These reports must disclose personal details of individuals who own or control a company, including their full names, addresses, and government-issued ID numbers.

However, the rollout of these requirements has been anything but smooth.

Court Challenges Delay Initial Reporting Deadlines

The confusion began in December 2024 when the U.S. District Court for the Eastern District of Texas issued a nationwide injunction in Texas Top Cop Shop, Inc. v. Garland, effectively pausing the CTA’s reporting obligations. The court sided with small businesses, arguing that the law overstepped by imposing regulations on companies that operate entirely within one state.

In response, FinCEN made BOI reporting voluntary while appealing the ruling. The case bounced between courts, with a temporary reinstatement of the reporting requirements on December 23, only for another injunction to block enforcement again just days later. The legal uncertainty continued until February 18, 2025, when the injunctions were finally lifted, reinstating the BOI reporting mandate nationwide.

New Reporting Deadlines: What Businesses Need to Know

With the court challenges now resolved, the deadlines have shifted:

• March 21, 2025: This is the new BOI reporting deadline for most existing businesses.
• 30 days from formation: For businesses formed on or after February 18, 2025, reports must be filed within 30 days of their creation.
• Later deadlines for disaster-affected businesses: Companies granted extensions due to natural disasters will retain their modified deadlines.

Final Thoughts for Business Owners

Despite recent legal hurdles, the CTA’s reporting requirements are back in force. Failing to comply could result in steep penalties, including fines of up to $10,000.

If you’re unsure how to file or need a more affordable, user-friendly solution, SnapFile can help simplify the process and keep you compliant without breaking the bank.