The U.S. Government has appealed a federal judge’s order temporarily blocking the enforcement of the Corporate Transparency Act (CTA). As a result, the case is now headed to the Fifth Circuit Court of Appeals.
Currently, reporting companies are not required to submit filings. FINCEN has acknowledged this in a recent update to its website, stating: “Reporting companies are not currently required to file a BOIR and are not subject to liability if they fail to do so while the applicable order remains in force.”
This appeal means that there is still potential for the CTA and its implementing regulations to become enforceable again. However, the case may ultimately reach the U.S. Supreme Court. While litigation continues, Ruder Ware’s CTA Team is closely monitoring any developments.
What Should Businesses Do Now?
- Stay Informed: Monitor updates on the CTA’s status, as future court decisions or legislative actions could alter current obligations.
- Be Ready to Act: If the suspension is overturned, be ready to act swiftly in gathering beneficial ownership information to ensure compliance if reporting requirements are reinstated.
- Consult Professionals: Engage with legal and compliance experts to understand how these developments impact your specific situation and to receive guidance on potential future requirements.
We are closely following this situation and will provide updates as more information becomes available.
