On December 23, 2024, the United States Fifth Circuit Court of Appeals lifted a December 3 trial court injunction that had blocked enforcement of the Corporate Transparency Act (the "CTA") on a nationwide basis (click here for our prior client alert with more information about the injunction). For a brief period, the CTA was back in effect.
However, on December 26, 2024, another panel of the Fifth Circuit overturned the December 23 order, which has the effect of reinstating the trial court's injunction. Please click here for a copy of the Fifth Circuit's December 26 order.
This means that the CTA is once again currently unenforceable, and all deadlines are suspended for the time being.
In the span of less than a month, the CTA has been blocked and reinstated multiple times by various courts. Given the significant uncertainty with respect to the CTA's future and the abrupt changes that we have seen to date, companies should consider voluntarily filing BOI reports even though it is not currently legally required. By doing so, companies may help avoid being caught off guard by future developments.
In general, all companies need to pay close attention to developments with respect to this and other CTA litigation, because, as we have seen, the current injunction could be lifted or modified at any time with little to no advance notice. Please regularly check our website and other sources of news, because although we may post updates with future developments, our firm cannot individually notify all prior and current clients if the CTA goes back into effect once again.
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.
