Court delays corporate transparency deadline

The rule requires virtually all corporations, limited liability companies, and other entities and legal arrangements (including many aviation businesses and entities owning aircraft) to report information about their owners to the Financial Crimes Enforcement Network.

The Beneficial Ownership Information (BOI) rule arises from the Corporate Transparency Act (CTA), which Congress passed in 2021 as part of a larger defense authorization act.

Since its passage, the CTA has been subject to a host of legal challenges, most of which have been unsuccessful. Recently, however, a Texas court issued a nationwide preliminary injunction suspending enforcement of the CTA and the BOI rule and staying the BOI reporting deadline pending further order of the court. Although the court’s ruling is preliminary, and has been appealed by the government, it means that no one is required to file their BOI reports—at least for now.

Given the possibility of the court’s order being overturned at any moment, we recommend that companies subject to the BOI rule continue to gather requisite beneficial owner information. But they need not file their BOI report. Of course, those wishing to file their BOI reports may continue to do so voluntarily.

AOPA will continue to monitor legal developments impacting the BOI rule.