Katrina Wahl, Author at Pickrel Schaeffer & Ebeling

CTA Reporting Obligation Reinstated

Katrina Wahl — Fri, 21 Feb 2025 18:58:37 +0000

As a result of the February 18 decision by the Eastern District of Texas to stay the nationwide preliminary injunction previously granted in Smith v. US Department of the Treasury, reporting obligations under the Corporate Transparency Act (“CTA”) are enforceable.

Yesterday, FinCEN announced March 21, 2025, as the deadline for filing the Beneficial Ownership Information Reports (“BOI Reports”) unless the reporting entity qualifies for a different deadline as a result of certain disaster relief deadlines or based on its formation date.

BOI Reports are filed directly with FinCEN at https://boiefiling.fincen.gov/fileboir.

FinCEN also announced its intention to review the reporting rule to reduce the burden on “lower-risk entities,” but it is unclear how that term may be defined or what modifications to the rule may be made. Therefore, we recommend that reporting entities plan to comply by the March 21, 2025, deadline.

Should you have questions regarding the CTA or need assistance determining who should be included in a BOI Report, please contact one of the following attorneys in our Business Department: Katie Wahl, Jerry McDonald, Dave Montgomery, or Marcella McHenry at 937.223.1130 or through https://pselaw.com/.

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Fifth Circuit Revives the Nationwide Injunction Against the CTA: Update 4

Katrina Wahl — Tue, 31 Dec 2024 18:41:13 +0000

Late on Thursday, December 26, 2024, the Fifth Circuit revived the nationwide preliminary injunction against enforcement of the CTA to preserve the “status quo” for the plaintiffs in the underlying litigation. FinCEN has acknowledged that all filings are currently voluntary.

If you choose to file during this voluntary period, BOI Reports are filed directly with FinCEN at https://boiefiling.fincen.gov/fileboir.

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FinCEN announced extended deadlines for filing BOI Reports and complying with the CTA: Update 3

Katrina Wahl — Thu, 26 Dec 2024 18:41:37 +0000

Following the Fifth Circuit’s decision to stay the injunction against enforcement of the Corporate Transparency Act (“CTA”), FinCEN announced extended deadlines for filing BOI Reports and complying with the CTA as follows:

Entities formed before January 1, 2024, must file initial BOI Reports on or before January 13, 2025.
Entities formed on or after September 4, 2024, which initially had filing deadlines between December 3, 2024, and December 23, 2024, must file initial BOI Reports on or before January 13, 2025.
Entities formed between December 3, 2024, and December 23, 2024, have an additional 21 days from their original filing deadline (90 days after formation) to file their initial BOI report.
Additional extensions may be applicable for those entities who qualify for disaster relief.

BOI Reports are filed directly with FinCEN at https://boiefiling.fincen.gov/fileboir.

Should you have questions regarding the CTA or need assistance determining who should be included in a BOI Report, please get in touch with one of our Business Attorneys: Katie Wahl, Jerry McDonald, Dave Montgomery, or Marcella McHenry at 937.223.1130.

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CTA Update 2

Katrina Wahl — Mon, 23 Dec 2024 21:55:38 +0000

The Fifth Circuit Court of Appeals has granted the government’s emergency motion requesting that the nationwide stay on filing Beneficial Owner Information Reports under the Corporate Transparency Act be lifted. Thus, the December 31, 2024 deadline for filing under the CTA is once again required and failure to timely file may result in penalties.

The Constitutionality of the Corporate Transparency remains subject to litigation but in the meantime, filing by December 31, 2024 for entities formed prior to January 1, 2024 is once again required under the Act.

PSE attorneys continue monitoring the ongoing litigation and will provide updates to inform you of your obligations to comply with the CTA. If you have questions regarding the Corporate Transparency Act or what this preliminary injunction means for your company, please contact Katie Wahl at kwahl@pselaw.com or (937) 223-1130.

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FinCEN Appeals CTA Injunction and Requests Court to Lift Stay: Update 1

Katrina Wahl — Tue, 17 Dec 2024 15:24:05 +0000

FinCEN has filed motions in both the Eastern District of Texas and the Fifth Circuit asking the Courts to stay the nationwide preliminary injunction against the enforcement of the Corporate Transparency Act (“CTA”) during its appeal of the injunction. In its filing in the Fifth Circuit, FinCEN asked the Court to rule no later than December 27 to allow reporting companies to comply with their obligations under the CTA by December 31.

At this point, the best practice is to have your Beneficial Ownership Information Report ready to file if either Court lifts the stay.

PSE attorneys continue monitoring the ongoing litigation and will provide updates to inform you of your obligations to comply with the CTA. If you have questions regarding the Corporate Transparency Act or what this preliminary injunction means for your company, please get in touch with Katie Wahl at kwahl@pselaw.com or (937) 223-1130.

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Corporate Transparency Act Enforcement Stayed

Katrina Wahl — Thu, 05 Dec 2024 22:07:11 +0000

On December 3, 2024, a judge in the Eastern District of Texas entered a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act. For now, this ruling means that Reporting Companies are not obligated to file an initial Beneficial Ownership Information Report prior to the current December 31, 2024 deadline. FinCEN is expected to appeal the preliminary injunction.

The attorneys of Pickrel, Schaeffer & Ebeling are monitoring the ongoing litigation and will provide updates as the litigation moves forward. If you have questions regarding the Corporate Transparency Act or what this preliminary injunction means for your company, please contact Katie Wahl at kwahl@pselaw.com or

937.223.1130.

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Corporate Transparency Act Update

Katrina Wahl — Thu, 04 Apr 2024 17:25:16 +0000

The Corporate Transparency Act (“CTA”) took effect on January 1, 2024. Under this federal law, entities registered to do business in the United States are required to file Beneficial Ownership Information (“BOI”) Reports with FinCEN, a part of the Treasury Department. These BOI Reports identify each individual who owns more than twenty-five percent of the ownership interest in the company, as well as each individual who can exert substantial control over the company. Newly registered or formed companies must file their initial BOI Report within 90 days of their registration, while companies registered on or before December 31, 2023, are required to file their initial BOI Report by December 31, 2024. Companies and owners who fail to file required reports under the CTA face substantial penalties, including monetary fines.

On Friday, March 1, 2024, a court in the Northern District of Alabama ruled the CTA to be unconstitutional (National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)) and entered an injunction against FinCEN enforcing the CTA against the plaintiffs in that particular case, which include all members of the National Small Business Association (a small business advocacy organization). Several other cases that make similar arguments are pending in federal court, including one in the Northern District of Ohio,

At this time, unless your company was a member of the National Small Business Association on March 1, 2024, your company must still comply with the CTA. Newly formed entities must file their initial Report no later than 90 days after registration with the Secretary of State or similar government agency. Pre-existing companies can delay their filings until later this year.

PS&E attorneys are monitoring the various pending federal cases and FinCEN’s announcements regarding their enforcement of the CTA. If you have any questions or want additional information about the CTA or its status, contact one of the PSE Corporate and Business Attorneys at 937.223.1130 or pse@pselaw.com.

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New Federal Reporting Requirement for Companies

Katrina Wahl — Tue, 26 Dec 2023 19:45:35 +0000

As of January 1, 2024, Ohio companies have an ongoing reporting requirement under the Corporate Transparency Act (“CTA”). This federal law requires companies to report information about individuals who directly and indirectly own or control the company to the Financial Crimes Enforcement Network (FinCEN). Failure to comply with the reporting obligations under the CTA or filing false information could result in civil and criminal penalties for the reporting company and related parties, including officers of a corporation and members of an LLC.

The CTA exempts companies in specific industries from complying with reporting requirements. Exemptions include banks, credit unions, insurance companies, and tax-exempt entities. Inactive companies and companies that generate annual gross receipts or sales of over $5,000,000 may also be exempt if all criteria are satisfied. All other companies are subject to the CTA and the reporting obligations.

Entities formed on or before January 1, 2024, have until January 1, 2025, to file the initial report.

Don’t wait to determine if your entity is required to report its ownership information under the CTA. For details on the CTA and how your company can fulfill its reporting obligations, feel free to contact any of these Pickrel, Schaeffer and Ebeling attorneys at 937.223.1130 or email Katie Wahl at kwahl@pselaw.com, Jerry McDonald at gmcdonald@pselaw.com, or Dave Montgomery at dmontgomery@pselaw.com.

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