On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit issued an order that effectively reinstates the nationwide preliminary injunction against enforcement of the Corporate Transparency Act (“CTA”) that was the subject of this previous GTC client alert. This order was issued only three days after a separate panel of the Fifth Circuit had lifted the injunction, as described in our client alert of December 24, 2024.
Although this ruling could relieve you of your duty to file your company’s Beneficial Ownership Information (“BOI”) report, the U.S. Department of Justice’s appeal of the underlying action is already pending, and the BOI filing requirement could be reinstated on short notice. We therefore recommend you be prepared to file and stay up to date on this quickly changing legal landscape. Please see our client alert from November 5, 2024 for basic information about the CTA filing requirements and an overview of the filing process.
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.