Day: January 24, 2025

Corporate Transparency Act Whiplash: Reporting Requirements Still on Hold

Written by Jeffrey K. Lewis, Esq., Program Coordinator, Income Tax Schools

Originally, I reported that beneficial ownership information (“BOI”) reporting requirements under the Corporate Transparency Act (“CTA”) were back in effect after the SCOTUS decision in the Texas Top Cop Shop case. However, that was not the full story.

A recap of the Texas Top Cop Shop case.
In the Texas Top Cop Shop case, a US District Court for the Eastern District of Texas issued a nationwide injunction against the enforcement of the CTA and its beneficial ownership BOI reporting requirements. However, the Government appealed that decision, and a motions panel of the Fifth Circuit Court stayed the injunction, essentially reinstating the reporting requirements of the CTA. Then, three days later, a merits panel of the Fifth Circuit reversed course and vacated the stay, effectively reinstating the nationwide injunction. The Government then applied to the Supreme Court of the United States (“SCOTUS”) for a stay of the nationwide injunction. SCOTUS did grant the Government’s application for a stay and has lifted the nationwide injunction against the CTA. However, the story does not end there.

Continue reading Corporate Transparency Act Whiplash: Reporting Requirements Still on Hold →

Using De-icers this Winter

Article by Ted Wiseman, ANR Educator Perry County.

Chemical de-icers will help remove ice, but can also cause damage to the surrounding environment. Over application of chemical de-icers can shorten the life span of concrete surfaces, corrode metal railings, pollute streams and lakes through run-off water, damage soils and stunt or kill plants adjacent to de-iced areas. Manual snow-removal followed by the application of an abrasive such as damp sand to create traction can keep sidewalks safe without the problems associated with de-icers. Using de-icers wisely, or replacing them with manual removal and abrasives, can minimize the potential for damage while keeping steps and sidewalks safe. Continue reading Using De-icers this Winter →

Farm Office Blog SCOTUS Allows Corporate Transparency Act Reporting Requirements to Resume

Written by Jeffrey K. Lewis, Esq., Program Coordinator, Income Tax Schools

The Supreme Court of the United States (“SCOTUS”) has issued its decision concerning the nationwide injunction against the Corporate Transparency Act (“CTA”) and its beneficial ownership information (“BOI”) reporting requirements.

On Thursday, January 23, 2025, SCOTUS ruled to allow the Government to enforce the CTA, which requires millions of businesses to file BOI reports. The justices stayed, or lifted, the nationwide injunction that had been blocking the CTA’s enforcement. This decision permits the government to proceed with implementing the CTA while its merits are reviewed by the U.S. Court of Appeals for the Fifth Circuit, which is scheduled to hold oral arguments on March 25.

What does this all mean? 
This decision means that, unless the Fifth Circuit and/or SCOTUS ultimately finds the CTA unconstitutional, its reporting requirements are back in full effect. Businesses nationwide are now required to file their BOI reports or risk facing civil and/or criminal penalties. As of the time of this publication, the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of Treasury has not updated reporting deadlines for businesses. Business owners are encouraged to visit the FinCEN website regularly to stay informed about the latest reporting requirements and deadlines.

The push to repeal the CTA goes beyond the court system.
While multiple lawsuits have been filed challenging the constitutionality of the CTA, there has also been legislative activity aimed at repealing it. Representative Warren Davidson and Senator Tommy Tuberville have reintroduced legislation in their respective chambers of Congress to repeal the CTA. These proposals were introduced in the previous congressional session but did not advance. With the new administration and a Republican majority in both chambers of Congress, it will be interesting to see how these efforts progress.

How do I file a BOI report? 
Business owners can complete all BOI reporting by visiting the FinCEN website. There is no cost to file a BOI report. However, if a business engages a tax professional, attorney, or other third party to file a BOI report on its behalf, the business will be responsible for covering any professional fees associated with the preparation and submission of the report.

Reporting companies will need the following information: (1) the reporting company’s legal name, (2) tax identification number, (3) jurisdiction of formation, and (4) current U.S. address. For their beneficial owners, reporting companies will need the following information: (1) full legal name, (2) residential address, (3) a form of identification, which must be either a state issued driver’s license, a state/local/tribe-issued ID, a U.S. passport, or a foreign passport, and (4) an image of the identification used in number (3). See our law bulletin for more details on reporting requirements.

Conclusion.
For now, businesses across the country are once again required to file BOI reports. However, as noted earlier, this requirement could change if the Fifth Circuit or SCOTUS ultimately finds the law unconstitutional, or if legislation repealing the CTA is passed. As always, we will do our best to keep you informed of any further developments.