CTA Reporting Deadlines Paused Again Following Fifth Circuit Reversal

On December 26, 2024, the Fifth Circuit Court of Appeals reversed its December 23, 2024, decision and reinstated a temporary nationwide injunction halting enforcement of the Corporate Transparency Act (CTA). This decision follows a legal battle surrounding the CTA’s beneficial ownership information (BOI) reporting requirements, leaving business owners in a state of uncertainty.

Background:

The CTA effective in 2024, requires reporting companies to disclose their BOI to the Financial Crimes Enforcement Network (FinCEN).

Original deadlines included:

• Existing companies (pre-2024): January 1, 2025.
• Companies created in 2024: Within 90 days of creation.

On December 4, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide injunction, halting enforcement of these deadlines. The Fifth Circuit temporarily lifted this injunction on December 23, 2024, but reinstated it on December 26, 2024.

Updated Deadlines:

FinCEN has extended certain filing deadlines:

• Pre-2024 companies: File by January 13, 2025.
• 2024 companies:
  • Created between September 4, 2024, and December 3, 2024: File by January 13, 2025.
  • Created between December 3, 2024, and December 23, 2024: File within 111 days of creation.
• 2025 companies: File within 30 days of creation notice.

What This Means for Business Owners:

In sum, no BOI filings are required at present due to the nationwide injunction. Although filing deadlines are currently paused, the legal battle over the CTA’s reporting requirements continues. Business owners should carefully monitor developments and seek legal advice about filing BOI reports before applicable deadlines to ensure compliance.

Need Help?

Simms Showers LLP is here to assist you in understanding and meeting your CTA reporting obligations. Contact us today for professional guidance.

Disclaimer: This memorandum is provided for general information purposes only and is not a substitute for legal advice particular to your situation. No recipients of this memo should act or refrain from acting solely on the basis of this memorandum without seeking professional legal counsel. Simms Showers LLP expressly disclaims all liability relating to actions taken or not taken based solely on the content of this memorandum.