Appeals Court Reinstates Corporate Transparency Act BOI Reporting Rule

With days left until enforcement begins, a federal appeals court on Monday overturned a lower court's decision and reinstated rules requiring businesses, including farms, to file Beneficial Ownership Information (BOI) reports as required under the Corporate Transparency Act.

The latest ruling is one more step in what will likely end up in a Supreme Court case over the Corporate Transparency Act (CTA), which requires businesses to provide their ownership information to the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN).

A three-judge panel in the U.S. Fifth Circuit Court of Appeals rejected an injunction from early December by a federal judge in Texas that blocked rules for the Treasury rule. The panel, divided on parts of the ruling, also ordered an expedited hearing for oral arguments on the lawsuit.

The ruling reinstates Jan. 1, 2025, for enforcement of BOI requirements to begin. FinCEN, noting Monday's decision, stated that reporting companies "are once again required to file beneficial ownership information with FinCEN." With that, FinCEN delayed the reporting requirements for two weeks.

Source: DTN

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