Corporate Transparency Act: Nationwide Reporting Temporarily Suspended
On December 3, 2024, in Texas Top Cop Shop, Inc., et al v. Garland et al, No. 4:24-cv-00478 (E.D. Tex. Dec. 3, 2024), a Texas federal district court issued a nationwide preliminary injunction halting the enforcement of the Corporate Transparency Act (CTA) by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). This injunction temporarily relieves reporting companies from filing beneficial ownership reports under the CTA. However, this is not a permanent resolution. If the injunction is lifted or overturned, the obligations under the CTA will resume.
Currently, it is unclear if FinCEN will adjust the filing deadlines for reporting companies in light of this ruling. As it stands, reporting companies formed before January 1, 2024, are required to file by January 1, 2025. Those formed in 2024 have 90 days post-formation to comply, while reporting companies established in 2025 must file within 30 days of their formation.
We strongly advise reporting companies to proceed with preparations to meet these deadlines as if no extensions will be granted. This is especially critical for businesses with complex ownership structures, where gathering and coordinating the necessary information from multiple beneficial owners can be time-consuming. Proactive compliance efforts include identifying beneficial owners, organizing beneficial ownership data, and ensuring all required information is readily available to expedite the filing process if and when the injunction is lifted.
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.
Additional information and specifics about CTA reporting requirements can be found on our website here.
If you have questions or require assistance in complying with the CTA, please email us at [email protected].
