Court does an about-face, revives the Corporate Transparency Act and Beneficial Owner Information reporting requirements

The Financial Crimes Enforcement Network (FinCEN) announced that the reinstated deadline for most reporting companies to file beneficial ownership information (BOI) reports was extended from January 1, 2025, to Jan. 13, 2025.

Housing providers and the professionals who serve them with LLCs, S corps, and C corps should know that a deadline is rapidly approaching to comply with the Corporate Transparency Act (CTA).

This federal law was enacted in 2021 as part of the Anti-Money Laundering Act of 2020 designed to combat money laundering, terrorist financing, and other illicit financial activities by increasing transparency in corporate ownership.

No matter how straight of an arrow housing providers are, all businesses with certain ownership structures (including landlords) still must volunteer information to FinCEN by January 13th, with certain exemptions. This information includes:

  • Full legal name.

  • Date of birth.

  • Current residential or business address.

  • A unique identifying number from an acceptable identification document (e.g., driver’s license or passport).

This information must be shared on ALL “beneficial owners,” defined as someone who owns or controls at least 25% or exercises substantial control over the entity. So, for example, there are four beneficial owners each holding a 25% stake. Big Brother wants to know all four of those individuals. Reported information is secure and not available for public search or access.

An about-face

Businesses got a respite from this administrative task on December 3, 2024, when the U.S. District Court for the Eastern District of Texas put into place a nationwide injunction against the CTA, yet on December 23, 2004, the Fifth Circuit Court of Appeals issued an order granting a stay of the original court’s preliminary ruling.

Helpful links

Download FinCEN’s Small Entity Compliance Guide →

Watch a 5-minute video on how to file a Beneficiary Ownership Information Report →

Get answers to Frequently Asked Questions →