Update: Injunction on Corporate Transparency Act Suspends Enforcement (Again)  

After just 3 days, the nationwide injunction has been reinstated on the enforcement of the Corporate Transparency Act (CTA). The latest action comes from the merits panel of the Fifth Circuit Court of Appeals. 

There has been an abundance of activity surrounding the CTA in just the last several weeks, here is an updated timeline: 

Current Status

• December 26: Merits panel of the Fifth Circuit Court of Appeals vacates the lifting of the stay, thus reinstating the injunction, issued by a different panel on December 23. 

Earlier This Month

• December 23: Fifth Circuit Court of Appeals lifted the original nationwide injunction and FinCEN extended some BOI reporting deadlines to January 13, 2025.

• December 6: Federal District Court placed a preliminary injunction on the enforcement of the CTA in Texas Top Cop Shop, Inc., et al. v. Garland, et al., Case No. 4:24-cv-478 (E.D. Tex.)

It’s difficult to stay updated with legislation towards the end of the year but also critical to stay informed. UHY does not provide services related to CTA or the CTA’s BOI reporting requirements. We strongly encourage you to contact your legal counsel to ascertain the impact of this latest activity on your company’s BOI reporting requirements.

**The following text is provided for context and does not reflect the latest status of the CTA. 

Appeals Court Lifts Injunction on Corporate Transparency Act; Extends Most Deadlines to January 13

On December 23, 2024, the Fifth Circuit lifted the nationwide injunction on the enforcement of the Corporate Transparency Act (CTA) that was issued by a Federal District Court in Texas Top Cop Shop, Inc., et al. v. Garland, et al., Case No. 4:24-cv-478 (E.D. Tex.) on December 3, 2024.

The lifting of the injunction means that reporting entities are once again required to file their Beneficial Ownership Interest (BOI) reports by the new filing deadline.

Extended deadlines

Recognizing that reporting entities may now need additional time to comply with their filing obligations, the Department of Treasury has granted an extension of the reporting deadlines as follows:

• Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial BOI reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)
• Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial BOI reports with FinCEN.
• Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial BOI reports with FinCEN.
• Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
• Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial BOI reports with FinCEN after receiving actual or public notice that their creation or registration is effective.

Actionable item

This article is not intended to provide any legal advice and UHY does not provide services related to CTA or the CTA’s BOI reporting requirements. We strongly encourage you to contact your legal counsel if you have questions regarding the CTA or to assist in your possible BOI reporting obligations.