UPDATE (MARCH 4, 2025) : As of now, the US Treasury Department has officially suspended all enforcement of the CTA. Read here for more details.
On Thursday 1/23/25, the Supreme Court reinstated the Corporate Transparency Act and lifted the injunction. The case now returns to the 5th US Circuit Court of Appeals for further deliberation.
So what does this mean?
- Nobody knows for sure whether the CTA will ultimately be proven unconstitutional. It could take months or even years to get to a final resolution.
- This law is exactly the type of regulation that President Trump would try to get rid of. However, only the courts can rule a law unconstitutional, and only the legislature can make or remove laws. This feels a lot like the health care mandate a few years ago. The law was never taken off the books, but Trump simply said the government would not enforce the penalty.
- Venture Vault is still advising our users to file the reports. As of today, the law is still effective and enforceable. What we do know is that if the business owners file the reports, they will not have worry about future penalties and they won’t have to think about it again. I do not want to tell someone not to file the reports, then the courts change again, and the client gets hit with heavy penalties.
- The filing deadlines for filing the BOI Reports are still in place as of today. Business owners should have already filed reports for entities in existence before 1/1/25. New entities must file the reports within 30 days of formation. The CTA imposes significant civil and criminal penalties for noncompliance ($591 per day).
We have spent 18 months developing our knowledge, processes, and systems to help clients file these reports correctly, quickly, and efficiently. Please let us know how we can help.
