The Corporate Transparency Act (CTA) remains on hold pending an appeal from the United States government after a temporary injunction was issued by a federal judge. 

This means that businesses will not have to file beneficial ownership reporting unless the preliminary injunction is lifted. It seems unlikely that there will be a decision prior to the Jan. 1, 2025 filing deadline for existing businesses, but businesses may decide to file voluntarily using the FinCEN website. 

Additionally, the U.S. Treasury Financial Crimes Enforcement Network (FinCEN) issued an alert on Dec. 18, 2024, with regards to fraudulent activities related to the beneficial ownership reporting. The alert specifically points to the following, which may indicate fraudulent correspondence from FinCEN:

• Correspondence requesting payment: There is NO fee to file beneficial ownership information (BOI) directly with FinCEN. FinCEN does NOT send correspondence requesting payment to file BOI. Do not send money in response to any mailing regarding filing your beneficial ownership information report that claims to be from FinCEN or another government agency.
• Correspondence that asks the recipient to click on a suspicious URL or to scan a suspicious QR code: Those e-mails or letters could be fraudulent. Do not click any suspicious links or attachments or scan any suspicious QR codes.
• Correspondence regarding penalties: FinCEN does not send initial correspondence regarding CTA penalties via e-mail or over the phone. Do not submit payments via phone, mail or websites as requests/directions to do so are fraudulent.

If you have any questions, please contact your GHJ engagement team or GHJ’s International Tax Practice.