On December 26, 2024, in response to an emergency motion for rehearing filed by plaintiffs, the US Court of Appeals for the Fifth Circuit reinstated the nationwide preliminary injunction against enforcement of the Corporate Transparency Act (CTA) (31 U.S.C. § 5336) and the Beneficial Ownership Information Reporting Requirements final rule (Final Rule) promulgated thereunder (31 C.F.R. 1010.380).
In Depth
The injunction was originally entered by the US District Court for the Eastern District of Texas on December 3, 2024, in Texas Top Cop Shop, Inc., et al. v. Garland, No. 4:24-cv-00478 (E.D. Tex). On December 23, 2024, the Fifth Circuit motions panel had granted the US Department of Justice's motion to stay the district court's preliminary injunction pending appeal on the merits. The court explained that it was reinstating the injunction to preserve the constitutional status quo while the Fifth Circuit merits panel considers the parties' weighty substantive arguments in this case. The Fifth Circuit has scheduled oral argument on the merits of this case for March 25, 2025.
Accordingly, the nationwide preliminary injunction against enforcement of the CTA and the Final Rule continues to apply. Entities are not currently required to comply with the reporting requirements of the CTA and the Final Rule.
Entities can, if desired, voluntarily submit Beneficial Ownership Information Reports (BOIRs) with the Financial Crimes Enforcement Network (FinCEN) at www.fincen.gov/boi. FinCEN had previously extended certain deadlines by which BOIRs need to be submitted (e.g., entities created or registered prior to January 1, 2024, were given an extended deadline of January 13, 2025, to file their initial BOIRs). However, no such reporting is currently required.
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