Business owners still do not have to file beneficial ownership information with the Treasury Department even though the government persuaded the Supreme Court to stay an injunction blocking the requirement in the Corporate Transparency Act.
The court on Thursday agreed with the federal government to stay an injunction issued by a U.S. district judge in Texas that blocked enforcement of the ownership reporting requirement, which would apply to about 230,000 farms, according to the American Farm Bureau Federation. The 5th Circuit Court of Appeals first stayed, then reinstated, the injunction pending appeal.
However, the Treasury Department noted in a statement that a separate order to block enforcement of the law, issued by a different federal judge in Texas, is still in place. That means, the department said, that “reporting companies are not currently required to file beneficial ownership information with [the Financial Crimes Enforcement Network] despite the Supreme Court’s action.”
“Reporting companies also are not subject to liability if they fail to file this information” while the other order is in effect, the department said. The government has not appealed that decision, but it still has time to do so, a lawyer for the plaintiffs in that case told the Wall Street Journal.
“[R]eporting companies may continue to voluntarily submit beneficial ownership information reports,” Treasury’s FinCEN said.
The National Cattlemen’s Beef Association said it was "disappointed" in the decision.
"This latest action from the U.S. Supreme Court allows enforcement of the beneficial ownership reporting requirements to move forward while federal court cases over the legality of the Corporate Transparency Act continue," National Cattlemen’s Beef Association Executive Director of Government Affairs Kent Bacus said in a statement. "Due to the fluid legal situation, NCBA advises cattle producers to consult an attorney and/or tax professional regarding personal impacts from the Corporate Transparency Act."
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