Client Advisory
Corporate Transparency Act—What you need to know

The Corporate Transparency Act (CTA), effective as of January 1, 2024, mandates that most U.S. businesses report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This legislation aims to combat illicit activities such as money laundering, terrorism financing, and tax evasion by increasing transparency around the individuals who own and control companies. Companies must now provide detailed information about their owners, including names, addresses, dates of birth, and identification numbers. Compliance with the CTA is crucial to avoid substantial fines and legal penalties. For more detailed guidance and assistance, please contact our office.

UPDATE (12/27/2024):

On December 3, 2024, a federal judge in the Eastern District of Texas granted a preliminary nation-wide injunction that enjoins enforcement of the CTA or the imposition of penalties for violations of the CTA pending final judgment in that lawsuit. The U.S. Department of Justice appealed from the injunction and sought a stay of the injunction. On December 23, 2024, the Fifth Circuit Court of Appeals granted the government's request for a stay. As a result, the nation-wide injunction was stayed. On December 26, 2024, a different panel of the Fifth Circuit Court of Appeals reversed its position and vacated the stay. As a result, the nation-wide injunction is back in effect. The history of back-and-forth on the CTA demonstrates that the status is fluid. We will continue to provide updates when more information becomes available.