On December 23, 2024, the Corporate Transparency Act (“CTA”), which was temporarily blocked from enforcement following a nationwide injunction issued by a U.S. District Court in Texas in Texas Top Cop Shop v. Garland, was reinstated as a result of a ruling by a panel of judges on the United States Court of Appeals for the Fifth Circuit. The government’s motion for a stay of the injunction of the pending appeal was granted, putting the CTA filing requirements back in effect. However, a different panel of the Firth Circuit issued an order on December 26, 2024, vacating the order to stay the preliminary injunction.
Accordingly, immediately following the Fifth Circuit’s second ruling, the Financial Crimes Enforcement Network (“FinCEN”) announced that reporting companies are not required to file beneficial ownership information (“BOI”) reports with FinCEN while the government’s appeal is pending.
Voluntary BOI reports may still be filed directly with FinCEN at https://boiefiling.fincen.gov/. In the event the injunction is lifted and the CTA reinstated, reporting companies should retain their BOI information to allow for filing in compliance with any new CTA deadlines put into effect.