A federal district court in Alabama recently held the Corporate Transparency Act’s (CTA) Beneficial Ownership Information (BOI) reporting requirements to be unconstitutional and enjoined its enforcement by the government as to the plaintiffs, the National Small Business Association (NSBA) and its 65,000 members.

Shortly after the court’s ruling, FinCEN issued a statement indicating that the Department of Justice intends to appeal the decision and that other than the members of the NSBA, all other reporting companies are still required to comply with the BOI reporting requirements (see Beneficial Ownership Information Reporting | FinCEN.gov).

While reporting companies formed prior to January 1, 2023, have until the end of 2024 to file a BOI report and may wish to hold off on filing a BOI report pending the outcome of the appeal of this case, newly formed reporting companies do not have the same luxury.  The CTA requires that new companies formed on or after January 1, 2024, to file an initial BOI report within 90 days of formation or registration. Thus, barring any new litigation, new reporting companies must comply with the BOI reporting requirements or risk civil or criminal penalties. As such, if your company was formed on January 1, 2024, and is required to file a BOI report, it has until March 31, 2024 to do so.