Update: As of December 26, 2024, the Fifth Circuit Court of Appeals has reversed its decision and reinstated the injunction on the Corporate Transparency Act, pending another hearing.
Learn more in GRSM’s most recent legal alert.
Following our recent communication regarding the nationwide preliminary injunction enjoining the enforcement of the Corporate Transparency Act (“CTA”), we would like to provide an update on the status of the injunction and the United States government’s position on filing under the CTA.
On December 11, 2024, the government filed a motion in the Eastern District of Texas (“Eastern District”) to stay the preliminary injunction pending appeal. On December 17, 2024, Judge Mazzant of the Eastern District denied the government’s motion.
In addition, on December 13, 2024, the government filed a motion in the Fifth Circuit Court of Appeals to stay the Eastern District’s order enjoining enforcement of the CTA. On December 23, 2024, the Fifth Circuit Court of Appeals stayed the Eastern District’s order enjoining enforcement of the CTA. This means that all reporting companies will be required to report beneficial ownership information (“BOI”).
The Financial Crimes Enforcement Network (“FinCEN”) announced via its website that reporting companies that were created or registered prior to January 1, 2024, have until January 13, 2025, to file their initial BOI reports. A reporting company formed on or after September 4, 2024, should refer to FinCEN’s site for its applicable filing deadline.
For your convenience, we have linked our previous client alert, which outlines the CTA filing requirements. Should you need assistance with the filing process or have any questions about the CTA, please see the Small Entity Compliance Guide or contact a lawyer in Gordon Rees Scully Mansukhani’s Business Transactions group, including the following GRSM team members: Craig Heryford at cheryford@grsm.com, Ronit Stone at rstone@grsm.com, Carol Schaner at cschaner@grsm.com, Elizabeth Hitt at ehitt@grsm.com, and Dan Graziano at dgraziano@grsm.com.