CTA Update: Fifth Circuit Reinstates the Corporate Transparency Act

Note: Most recent update including filing date extension detail can be found here.

On Monday, December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit granted the federal government’s request to lift a nationwide injunction blocking enforcement of the Corporate Transparency Act (CTA).  The Fifth Circuit’s Order, which granted the government’s emergency motion for a stay pending appeal, has the effect of reinstating the January 1, 2025 deadline for business owners to submit so-called Beneficial Ownership Information (BOI) Reports. That deadline was previously suspended by the U.S. District Court for the Eastern District of Texas in a case known as Texas Top Cop Shop, Inc., et al. v. Garland, et al.

Unless and until something changes, ALL REPORTING COMPANIES WHO HAVE NOT YET COMPLIED WITH THE CTA ARE REQUIRED TO SUBMIT A BOI REPORT BY OR BEFORE JANUARY 1, 2025.  We encourage you to revisit our prior Client Alert if you need refresher on who needs to report, what information needs to be included, and where you can file.  As a reminder, BOI Reports can be submitted online using the government’s e-filing system.

At the time of publication, the Financial Crimes Enforcement Network(FinCEN) has yet to release any guidance based on today’s ruling. We will continue to keep you informed as updates become available.

This article was written by Kevin McGrath, a partner in HRMM&L’s Business Law Department. You can reach Kevin at 215.661.0400 or email him at KMcGrath@HRMML.com.

This Client Alert is being provided for informational purposes only, and is not intended and should not be construed as legal advice.