Corporate Transparency Act Fraud Alert
November 7, 2023 | Carole Clark Isakson
Update December 19th, 2024
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction in Texas Top Cop Shop, Inc., et al. v. Garland, enjoining the federal government from enforcing the Corporate Transparency Act (CTA) and its reporting deadlines.
On December 13, 2024, the Department of Justice (DOJ) filed an Emergency Motion for Stay Pending Appeal in the Fifth Circuit requesting an expedited briefing schedule and a ruling “as soon as possible, but in any event no later than December 27, 2024, to ensure that regulated entities can be made aware of their obligation to comply before January 1, 2025.” Reporting companies should continue monitoring developments in the coming days in case the January 1, 2025 deadline for filing is reinstated.
Have you heard about the Corporate Transparency Act? Starting in January 2024, many entities will need to report ownership and management information to FinCEN — Financial Crimes Enforcement Network. This branch of the US Treasury Department collects and examines details on economic transactions to help thwart domestic and international financial crimes. Barna, Guzy & Steffen has been actively educating our clients and business partners about this important law. As people become more aware of the requirements, criminals have seen this new reporting requirement as an opportunity to steal personal information. Keep reading to learn more about how to avoid becoming a victim of fraudulent activity regarding the Corporate Transparency Act.
Details from the Treasury Department
For your convenience and protection, BGS is sharing this information directly from the FinCEN Website:
“FinCEN has been notified of recent fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. The fraudulent correspondence may be titled “Important Compliance Notice” and asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. FinCEN does not send unsolicited requests. Please do not respond to these fraudulent messages or click on any links or scan any QR codes within them.”
Contact Barna, Guzy & Steffen
Staying informed is the best way to stay vigilant against being a victim of a financial crime. At BGS, it is our hope that the more our clients are aware of these types of threats, the better protected they will be.
If you have questions about the Corporate Transparency Act, the Business Law attorneys at BGS are here to help. Contact our office for assistance. Carole Clark Isakson, Scott Hagel, Jacob LeVahn, or the rest of the BGS team can answer your questions.