At approximately 1:30 p.m. ET on December 23, 2024, the United States Court of Appeals for the Fifth Circuit stayed a lower court injunction and reinstated with immediate effect the Beneficial Ownership Information reporting requirements mandated by the Corporate Transparency Act (CTA).
A panel of the Fifth Circuit stayed the preliminary injunction issued by a lower court at the beginning of December that suspended enforcement of the FinCEN reporting requirements. (Texas Top Cop Shop v. Garland (December 3, 2024) U.S. Dist. Ct., Eastern Dist. Of Texas, Case No. 4:24-CV-478). The plaintiff already issued a public statement that it will appeal the Fifth Circuit decision. As of the time of this notification, the United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has not publicly released any guidance based on today’s ruling.
Currently, businesses ARE NOW REQUIRED to file beneficial ownership information reports with FinCEN in accordance with the January 1, 2025 compliance deadline for reporting companies in existence as of January 1, 2024.
We will provide additional updates as information becomes available, including any guidance FinCEN publishes regarding compliance with the reinstated deadline. As always, we are ready to guide you along the best path as you navigate these changes and their impact on your business.