Injunction Lifted – CTA Enforcement Back in Effect
As mentioned in a previous Alert, on December 3, 2024, the United States District Court for the Eastern District of Texas granted a nationwide preliminary injunction enjoining the government from enforcing the Corporate Transparency Act (the “CTA”) and its implementing regulations, which the U.S. government promptly appealed.
On December 23, 2024, the United States Court of Appeals for the Fifth Circuit granted the government’s appeal and lifted the nationwide injunction. As a result, the CTA is once again enforceable, and reporting companies are required to file beneficial ownership information with the Financial Crimes Enforcement Network (“FinCEN”).
Following the ruling, FinCEN extended the deadlines to file initial beneficial ownership information reports as follows:
- Reporting companies created or registered prior to January 1, 2024 have until January 13, 2025 to file.
- Reporting companies created or registered on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file.
- Reporting companies created or registered on or after December 3, 2024 have an additional 21 days from their original filing deadline to file.
- Reporting Companies that qualify for disaster relief may have extended deadlines that fall later than January 13, 2025, in which case they should abide by whichever deadline falls later.
- Reporting companies created or registered after January 1, 2025 have 30 days to file.
We will continue to monitor the progress of this case and other challenges to the CTA.
For additional background, please read our December 5, 2024 Alert, August 2024 Alert, September 2023 Alert, and July 2022 Alert.
