Corporate Transparency Act Enjoined Again

On December 26, 2024, the U.S. Fifth Circuit Court of Appeals vacated its own order staying the nationwide preliminary injunction of the enforcement of the Corporate Transparency Act (“CTA”) and its reporting deadlines. As it gets closer to the initial deadline of January 1, 2025, the Court has been going back and forth on the status of reporting requirements while pending litigation considers the constitutionality of the CTA.

On December 3, 2024 the Fifth Circuit issued a nationwide preliminary injunction, enjoining the enforcement of the CTA and staying its reporting deadline. However, on December 23, 2024, the Court granted a stay of that injunction, reinstating the reporting obligations and original deadlines.  As a result, reporting companies were then put back in a position to file their beneficial ownership information (“BOI”) reports by January 1, 2025. FinCEN, the agency in charge of enforcing the CTA and collecting BOI reports, granted an extension allowing reporting companies to file their BOI reports by January 13, 2025.

However, on December 26, 2024, the Court vacated its December 23, 2024 order and enjoined (again) the enforcement of the CTA and its reporting requirements while it considers substantive arguments over the constitutionality of the CTA. This means that reporting companies do not need to file BOI reports by January 1, 2025 or by the extended deadline of January 13, 2025. As is evident by the three conflicting orders within the past few weeks, things can change at any moment.  But, for now, it remains optional for reporting companies file BOI reports.