On December 26, 2024, the United States Court of Appeals for the 5th Circuit vacated its own stay of the preliminary injunction of the enforcement of the Corporate Transparency Act (CTA), meaning the requirement to file the Beneficial Ownership Information (BOI) Report has once again been temporarily suspended.
To recap the events that have led to the 5th Circuit’s current ruling:
- On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction which temporarily blocked enforcement of the CTA.
- On December 23, 2024, a panel of the 5th Circuit Court of Appeals lifted the December 3, 2024 order, effectively restoring enforcement of the CTA.
- On December 24, 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) extended certain BOI reporting deadlines.
- On December 26, 2024, the 5th Circuit Court of Appeals reversed their December 23, 2024 decision, reinstating the preliminary injunction which temporarily blocks the enforcement of the CTA.
Even though the CTA obligations have once again been suspended, reporting companies should keep a close eye on the progress of the case, as the courts may once again reverse the injunction and reinstate the CTA reporting requirements and we do not know if FinCEN will provide any additional extensions if the CTA reporting requirements are reinstated.
If you have any questions regarding the CTA or its current status, please feel free to reach out to any of the attorneys at FBFK.
