Beneficial Ownership Information Frequently Asked Questions

On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), a federal district court in the Eastern District of Texas, issued an order granting a nationwide preliminary injunction that: (1) enjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements, and, specifically, (2) stays all deadlines to comply with the CTA’s reporting requirements. The Department of Justice, on behalf of the Department of the Treasury, filed a notice of appeal on December 5, 2024.

In light of this recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

The guidance contained in these FAQs addresses the requirements of the CTA and FinCEN’s implementing regulations. As these requirements are currently enjoined, the guidance here should be understood to address the requirements at such a time as the injunction may be lifted. While the injunction is in effect, reporting companies are not required to file beneficial ownership information with FinCEN.