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On December 23, 2024, the U.S. Court of Appeals for the 5th Circuit granted the government's motion to lift the nationwide injunction that paused compliance with the Corporate Transparency Act (CTA). In doing so, the Court found that the government was likely to prevail in its argument that the CTA is constitutional. The Court also expedited oral arguments in the case.
The Department of Treasury's Financial Crimes Enforcement Network (FinCEN), the agency responsible for enforcing the CTA, has provided certain extensions for reporting companies to file initial beneficial ownership reports. Companies which need to comply with the CTA should resume plans to file with FinCEN in accordance with the applicable deadline.
Companies created or registered before January 1, 2024, had a January 1, 2025, deadline to file an initial beneficial ownership report, now extended to January 13, 2025.
Companies created or registered after January 1, 2024, and before January 1, 2025, have a 90-day deadline after formation or registration to file an initial beneficial ownership information report. This deadline was extended in limited circumstances.
- Companies created or registered between September 4, 2024, and September 24, 2024, that have not yet filed an initial beneficial ownership report, now have until January 13, 2025.
- Companies created or registered between December 3, 2024, and December 23, 2024, have an additional 21 days from the applicable deadline after formation or registration.
Companies created or registered during 2024 that are not covered by one of the above extensions had a 90-day deadline to file an initial beneficial ownership report and that deadline has not been extended.
Companies created or registered after January 1, 2025, will have a 30-day deadline to file an initial beneficial ownership report.
We are continuing to closely monitor developments in other pending cases challenging the CTA and will provide updates regarding any changes in the CTA's status.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
