Yesterday, the U.S. Court of Appeals for the Fifth Circuit lifted the national stay temporarily prohibiting the federal government from enforcing the Corporate Transparency Act (the “CTA”). Earlier this month, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), the U.S. District Court for the Eastern District of Texas blocked the federal government from requiring companies to disclose certain beneficial ownership information (“BOI”) to the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”). Material aspects of the CTA were subject to a January 1, 2025, reporting deadline.
In light of the Fifth Circuit’s decision, the CTA is again enforceable and certain reporting companies will be required to report beneficial ownership information by January 13, 2025, after FinCEN extended the original deadline within hours of the Fifth Circuit ruling. While the U.S. Supreme Court may consider an appeal, which could delay or halt the upcoming filing deadline, companies should nevertheless be prepared to make relevant filings by the January deadline.
