Another CTA Update – Filing Suspended Again

UPDATE: Corporate Transparency Act Filings Once Again Suspended

Ending the 2024 year with yet another turn of events, the U.S. Court of Appeals for the Fifth Circuit has once again hit the brakes on the Corporate Transparency Act (CTA) reporting requirements for Beneficial Ownership Information (BOI). In order to keep our clients informed of these changes since our last update, here is the summary of the latest:

• On December 26, 2024 (just three days after the BOI Requirements were reinstated by the U.S. Court of Appeals for the Fifth Circuit), the merits panel of the U.S. Court of Appeals for the Fifth Circuit reinstated its nationwide preliminary injunction blocking FinCEN from enforcing the BOI reporting requirements under the CTA.
• As a result, FinCEN has since put out a statement confirming that reporting companies are not currently required to file beneficial ownership information with FinCEN and will not be held liable if they fail to do so while the preliminary injunction remains in effect.
• Although we do not have an exact date of when this litigation will be resolved, the Fifth Circuit issued an expedited briefing schedule, with briefing to be completed by February 28, 2025, and oral arguments to begin on March 25, 2025.

The future of the CTA remains uncertain, particularly with anticipated changes to the legislative and executive branches in 2025. As a result, businesses who would be required to file BOI Reports under the CTA and have not already done so should continue to review their obligations and be prepared to file such reports on short notice.

For more information, the latest updates from FinCEN regarding the ongoing litigation can be found here. More information about the filing process can be found here. We will continue to monitor developments and provide updates as more information becomes available.

DISCLAIMER: The information provided above is for informational purposes only, is general in nature, and is not meant to be an exhaustive list of all reporting requirements under the CTA. It does not constitute legal advice and should not be interpreted or relied on as such. For legal advice tailored to your specific circumstance, please reach out to one of our qualified attorneys.