DESPITE COURT RULING, NBAA RECOMMENDS LLCS CONTINUE TO PREP CTA REPORTS Source: https://nbaa.org/, Editor, First published Dec 09, 2024 Although a federal court has put a hold on requirements under the Corporate Transparency Act (CTA) for certain companies to report specific owner information – including ownership of business aircraft – by Jan. 1, 2025, experts encourage those impacted by the CTA to continue readying for reporting requirements. The U.S. Court for the Eastern District of Texas has determined that reporting requirements under the Corporate Transparency Act (CTA) may be unconstitutional, issuing a preliminary injunction enjoining enforcement of the rule nationwide. The Dec. 3 preliminary injunction temporarily stays a compliance deadline of Jan. 1, 2025. Effectively, this means entities affected by the CTA need not comply with the Jan. 1 reporting deadline while the injunction is in effect. The CTA authorized the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to request limited liability companies (LLC) and other entities to report “ultimate beneficialowner information,” including name, date of birth, current address and more. This would apply to entities that own business aircraft in an LLC, a common structure to establish leases under which Opening Lines 7 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 12
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