On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated the enforceability of the Corporate Transparency Act (CTA). The preliminary injunction previously issued against enforcement of the CTA has been lifted, effective immediately, resulting in the reinstatement of mandatory compliance with the CTA by non-exempt reporting companies.
What This Means:
The reporting deadline (previously December 31, 2024) for non-exempt companies formed before January 1, 2024 is again in effect, however, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) extended the deadline to January 13, 2025. Any reporting companies that have not yet filed should resume filing their BOI reports by the January 13, 2025 deadline.
Potential for Further Changes:
- FinCEN may provide additional guidance following the December 23, 2024 order. Additional information is available on FinCEN’s website at www.fincen.gov, which may continue to be updated.
- Reporting companies should continue to stay informed regarding ongoing developments. The plaintiffs from the case in which the injunction was issued, Texas Top Cop Shop, Inc., et al. v. Garland, et al. (No. 4:24-CV-0478) (U.S. District Court for the Eastern District of Texas), may seek further review from the Fifth Circuit or the United States Supreme Court, which could again modify the requirement to comply. Also, other federal courts are hearing challenges against the CTA and may expedite responses as a result of this change.
We will continue to provide updated information as soon as it is available regarding any additional changes in the requirement to comply.
