On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated the Corporate Transparency Act (CTA) compliance requirements by granting an emergency stay of a nationwide preliminary injunction. The injunction, issued earlier in December by the U.S. District Court for the Eastern District of Texas, had temporarily blocked the enforcement of the CTA, including the January 1, 2025, deadline for reporting beneficial ownership information. The Fifth Circuit’s decision allows the CTA to proceed while an expedited appeal is pending, reversing the lower court’s ruling that raised constitutional concerns about the law and its associated regulations.
In response to the Fifth Circuit’s ruling, the Financial Crimes Enforcement Network (FinCEN) has adjusted reporting deadlines to account for the time the injunction was in place. Those deadlines are now:
- Businesses created before January 1, 2024, now have until January 13, 2025, to file their initial beneficial ownership reports instead of the original January 1 deadline.
- Entities created between September 4, 2024, and December 23, 2024, with deadlines during the injunction period, also have until January 13, 2025, to comply.
- Businesses created between December 3 and December 23, 2024, are granted an additional 21 days from their original filing deadlines, while those created on or after January 1, 2025, should submit reports within 30 days of receiving the registration notice.
While the ultimate decision regarding the enforceability of the CTA is yet to be made (there will almost certainly be more decisions issues in the coming days), companies that are required to report should be prepared (if they have not yet filed already) to meet the reporting requirements by the newly established deadlines.
*NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.