Current Status of Corporate Transparency Act Compliance (March 7, 2024)

Current Status of Corporate Transparency Act Compliance (March 7, 2024)

By Admin March 07, 2024    Category: Compliance     Tags: Beneficial Ownership business attorney business risk management california business law chase law group chase law manhattan beach Corporate Transparency 2024 Corporate Transparency Act deanna chase Financial Crime Prevention Corporate Governance FinCEN Legal Compliance legal obligations los angeles Reporting Requirements Small Businesses US Businesses

Current Status of Corporate Transparency Act Compliance (March 7, 2024)

At Chase Law Group, we’ve had several inquiries with regard to the status of compliance with the Corporate Transparency Act (“CTA”) in light of the March 1, 2024 ruling by the federal district court in the Northern District of Alabama in the National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.) wherein the court found the CTA to be unconstitutional and enjoined enforcement of the CTA as to the parties in that case only.

In a notice issued by the Financial Crimes Enforcement Network (FinCEN) on March 4, 2024 with regard to the ruling, FinCEN advised that “the government is not currently enforcing the Corporate Transparency Act against the plaintiffs in that action: Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024). Those individuals and entities are not required to report beneficial ownership information to FinCEN at this time.”
Accordingly, it appears that the CTA continues to apply to anyone who is not one of the plaintiffs in that case. The government has indicated that it will be appealing the case but, even if it does, it still does not avoid the current requirement on the part of all other impacted business owners to file the Beneficial Ownership Information Report, (“BOIR”).

Our firm has offered a flat rate of $500 to file the BOIR for existing clients, and a flat rate of $250 for any client that is enrolled in one of our compliance packages. It is unlikely that the CTA will be completely invalidated any time soon, and there are very harsh penalties for non-compliance. So, it is our recommendation to move forward with the filing of the BOIR.

For entities existing prior to 1/1/2024, the BOIR is not due until 12/31/24. We ask that you let us know when we contact you for your annual entity review whether you would like to have us file the report for your company, and whether you would like for us to hold off on the filing until later in the year.

For those who decide to hold off, we will add you to a list of clients that we will follow up with towards the end of the year. We will not take any action to gather the information to file the report or file the report, and you will not be charged until the report is filed. However, as this impacts every single one of our clients, we need to know whether or not you want us to handle the reporting for your entity.

We appreciate the opportunity to be part of your team, and to keep you advised of legal developments as they arise. Please do not hesitate to reach out to us if you have any questions or concerns. Contact Chase Law Group today or give us a call at 310-545-7700 for help with the Corporate Transparency Act.

DeAnn Chase
Founder, Chase Law Group