On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit lifted the nationwide preliminary injunction against enforcement of the Corporate Transparency Act (“CTA”) that was the subject of this previous GTC client alert, finding that the government had made a strong showing that it is likely to succeed in defending the CTA’s constitutionality.
This means that, unless there is further legal action, the requirement to file beneficial ownership reports with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has been reinstated. However, in recognition of the interruption caused by the injunction, the Treasury Department has extended the reporting deadlines. In particular, reporting companies that were created or registered before January 1, 2024 will now have until January 13, 2025 to file their initial reports, instead of the original deadline of January 1, 2025. Please see our client alert from November 5, 2024 for basic information about the CTA filing requirements and an overview of the filing process.
Companies that are required to file beneficial ownership reports under the CTA but have not yet filed should therefore resume their preparations and ensure they meet the new deadlines.
This alert does not constitute legal advice but does provide a brief update on recent litigation regarding the CTA and its reporting requirements. If you have remaining questions or would like our help in navigating these developments, please reach out to your regular GTC contact.