FinCEN has indicated that the filing of Beneficial Ownership Information is voluntary until further notice. Reporting companies will not be subject to liability if they fail to file while the preliminary injunction remains in effect, according to FinCEN. Epstein said it’s unlikely a court action changing the status of the injunction will occur before the Jan. 1 deadline, so for now, reporting entities are not required to file a report. Should a higher court reverse this decision, it is likely the stay would be lifted with a future effective date, allowing impacted entities to report before a new compliance date. companies may share aircraft and for a host of other business and tax reasons. Under the CTA, millions of entities formed prior to Jan. 1, 2024, had until Jan. 1, 2025, to file. Jonathan Epstein, partner at Holland & Knight LLP, says that despite the federal court’s action, entities impacted by the CTA are strongly advised to continue preparing for the reporting requirement. “Don’t stop preparing for this report,” Epstein said. “Be ready to file because we don’t know what’s going to happen in a higher court,” adding that, for some companies, the reporting requirement is quite simple, but others will need time to gather data to make the report. 8 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 12
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