BREAKING NEWS: Fifth Circuit Reverses Course, Suspends CTA Deadlines
In a surprising turn of events, the Corporate Transparency Act’s reporting deadline is once again suspended.
Earlier this week, 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 CTA. The Fifth Circuit’s Order, which granted the government’s emergency motion for a stay pending appeal, had the effect of reinstating the January 1, 2025 deadline for business owners to submit so-called Beneficial Ownership Information (BOI) Reports. That deadline was subsequently extended to January 13, 2025 by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
For the time being, those deadlines can be ignored. That is because the Fifth Circuit has elected to reverse course. In an Order dated December 26, 2024, the Court vacated its earlier ruling and reinstated the District Court’s preliminary injunction. While a briefing schedule for the parties has yet to be issued, it is worth noting that the appeal is being heard on an expedited basis. A decision by the Fifth Circuit can be expected sometime in the first few months of 2025.
This recent flurry of court orders and regulatory guidance is sure to leave even the most-attentive business owners a bit confused. For the time being, however, this much is clear: the deadline to submit BOI Reports is temporarily suspended. Unless and until a superseding order is entered, the CTA will remain on pause for the duration of the government’s appeal.
As promised, we will continue to update you an information becomes available. Please do not hesitate to contact our office with any questions.
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.