On December 23, 2024, the Fifth Circuit Court of Appeals lifted the nationwide injunction on the Corporate Transparency Act (CTA), reinstating its enforceability. As a result, reporting companies and their beneficial owners are once again subject to the CTA’s requirements, necessitating the submission of beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
In response, FinCEN has slightly adjusted the reporting deadlines for reporting companies formed before January 1, 2024. Reporting companies formed before January 1, 2024, now have until January 13, 2025, to file their reports. Reporting companies formed in 2024 must adhere to the reinstated requirement of filing within 90 days of formation, while those formed in 2025 must comply within 30 days.
While these developments are significant for reporting companies and their beneficial owners, they do not constitute the final word on the CTA. To date, neither the US District Court for the Eastern District of Texas nor the Fifth Circuit has issued a definitive judgment on the constitutionality of the CTA. The ongoing litigation has primarily focused on whether enforcement of the CTA should be enjoined pending a final determination.
With these reporting obligations reinstated, it is crucial for reporting companies and their beneficial owners to act swiftly to ensure compliance within the limited timeframe.
The information provided herein is not intended to provide legal advice to the reader. CTA compliance is extremely fact intensive and varies depending on the specific circumstance. If you have questions or require assistance in complying with the CTA, please contact Blake Gabriel for more information.
