.
December 9, 2024
Last week, a federal court in Texas issued a nationwide preliminary injunction to the 2021 Corporate Transparency Act’s beneficial ownership information (BOI) reporting requirement, ruling it unconstitutional. The requirement for beneficial owners of small businesses and corporations to report information to the U.S. Treasury by January 1, 2025, is paused for the time being. Unless a higher court appeals this decision – which is a possibility before January 1st – companies are not required to report their information to FinCEN, a bureau of the U.S. Treasury.
Background on the BOI Reporting Requirement
The Corporate Transparency Act, enacted in 2021, is intended to strengthen enforcement of illicit financial crimes such as money laundering. As a result, the Treasury Department wrote requirements for beneficial owners of certain businesses to report their information to FinCEN.
According to the U.S. Treasury, a beneficial owner is defined as someone who has substantial control over a reporting company or owns or controls at least 25 percent of the ownership interests of a reporting company. Entities such as a limited liability company (LLC) and businesses with less than 20 full-time employees with gross revenue less than $5 million in the United States, are likely to be reporting companies.
Exemptions do exist for certain companies. There are 23 industries that qualify for an exemption. Entities that are exempt include tax-exempt organizations, banks and credit unions, and most sole proprietorships, to name a few.
As written, failure to comply could result in significant penalties to the tune of $500 daily, or criminal penalties including imprisonment and a fine of up to $10,000.
Federal
Reuters – US judge won't revive rule capping credit card late fees at $8
National Law Review – Injunction Suspends Enforcement of Corporate Transparency Act, Texas Court Rules
State & Local
Fort Worth Report – Fort Worth council to vote on economic incentives for Bell manufacturing plant, Ariat expansion
Star-Telegram – Fort Worth Police Chief Neil Noakes announces he’ll retire in May 2025
KVUE – TxDOT looking to keep federal rule that allows it to approve its own environmental reviews
The Fort Worth Chamber’s Energy Council launched its 2026 programming with a well-attended breakfast meeting featuring Garrett Golding, Assistant Vice President for Energy Programs at the Federal Reserve Bank of Dallas. The event marked the Energy Council’s first gathering of the year and Golding’s second time visiting with the group, continuing a valued dialogue between the Dallas […]
Each milestone reflects years of commitment to the Chamber and to Fort Worth. From small businesses to long-standing institutions, these members play an essential role in driving growth, creating opportunity, and strengthening our city. We’re grateful for their continued partnership and impact. ⭐️ 84 Years – Freese and Nichols, Inc.⭐️ 84 Years – McClatchy/Star-Telegram⭐️ 84 […]
