Despite Court Ruling, NBAA Recommends LLCs Continue to Prep CTA Reports

Aviation law attorney Jonathan Epstein provided insights in a National Business Aviation Association article about a significant legal development affecting the Corporate Transparency Act (CTA). The U.S. Court for the Eastern District of Texas issued a nationwide preliminary injunction against the CTA's reporting requirements, which mandate certain companies to provide the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) specific owner information, including ownership of business aircraft. This ruling temporarily suspends the Jan. 1, 2025, compliance deadline for reporting beneficial ownership information to FinCEN, offering a reprieve for affected entities in the aviation industry while the court further examines the constitutionality of the act. Mr. Epstein cautioned that despite the injunction, entities potentially affected by the CTA should continue compiling reports and be prepared to send them come the new year.

"Don't stop preparing for this report," he advised. "Be ready to file because we don't know what's going to happen in a higher court," adding that, for some companies, the reporting requirement is quite simple, but others will need time to gather data to make the report.

READ: Despite Court Ruling, NBAA Recommends LLCs Continue to Prep CTA Reports