December 27 Update:
As of December 26, 2024, the Fifth Circuit Court of Appeals issued an order vacating the stay of the preliminary injunction. This ruling means that for the time being, the injunction remains in effect and Financial Crimes Enforcement Network (FinCEN) does not have the authority to enforce Beneficial Ownership Information (BOI) reporting requirements. This ruling comes just three days after a different Fifth Circuit panel lifted the injunction. As of December 27, 2024, FinCEN updated their website to indicate that submission of BOI Reports is voluntary for the moment. It remains unclear if FinCEN will further extend the January 13, 2025 deadline if the injunction is stayed or lifted again in the future.
This is a fluid and constantly evolving matter that “reporting companies” should continue to carefully watch. For further details please refer to FinCEN’s website. We will continue to monitor the developments of this case and circulate updates as they become available.
December 23, 2024 Update on Fifth Circuit Temporary Stay:
On December 23, 2024, the Fifth Circuit Court of Appeals GRANTED the Government’s emergency motion for a temporary stay of the nationwide injunction that blocked enforcement of the Corporate Transparency Act (CTA) through Texas Top Cop Shop, Inc. et al. v. Garland et al., No. 4:24-cv-478 (E.D. Tex.; Dec. 3, 2024). This means that all “reporting companies” who have not already submitted their BOI reports with FinCEN should timely submit their BOI reports by the reporting deadlines to comply with the CTA.
The original reporting deadline for “reporting companies” formed prior to January 1, 2024 was January 1, 2025. FinCEN has now extended the initial filing deadline for these “reporting companies” from January 1, 2025 to January 13, 2025 (for further details please refer to FinCEN’s website).
We will continue to monitor the legal proceedings, and provide further updates to the CTA as they develop.
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