UPDATE: Corporate Transparency Act and Beneficial Ownership Information Report Filing Suspended

Mar 29, 2024Supply Chain Chronicles

Last month, we informed you that A Pricey Policy may have just slipped in Under your Radar

Now we’re happy to inform you that this burdensome needless threat to your business has suffered a devastating legal blow.

In a nutshell, the Beneficial Ownership Report (BOI) was a sudden filing requirement imposed, under the Corporate Transparency Act (CTA), to verify the identity of anyone with a controlling interest in a business, as a knee-jerk regulatory reaction against anonymously owned organizations engaged in “illicit business activities.”

And it carries costly penalties for non-compliance (up to $500 per day).

BUT…

This provision has just been deemed unconstitutional by the US District Court for the Northern District of Alabama, when it was challenged by business owner Isaac Winkles, along with the National Small Business Association (NSBA). The court found it to be an overreach of congressional power.

As a result, its enforcement is suspended in regards to THE PLAINTIFFS IN THIS CASE, Winkles, and NSBA members at the time of the trial. Here’s where things get a little complicated (that’s what we’re here for):

What you need to know…

While this case bodes well for this requirement to possibly be eliminated, IT HASN’T HAPPENED YET, and there are no guarantees. Businesses not involved in the case are presumably still expected to comply. This likely includes YOU.

In the meantime, in addition to us keeping you in the know, we recommend you monitor the BOI homepage paying particular attention to the reporting deadlines, and act accordingly.

As always, we’ll keep you abreast of updates as we get them.

Are you on the right side of compliance?

Contact Commerce Law Partners today and Prepare to Win.

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