The Fifth Circuit Court of Appeals has granted the government’s emergency motion to stay a Texas district court’s nationwide injunction against the Corporate Transparency Act (CTA), reinstating the original CTA disclosure deadline. If you have not filed yet, please note that the original CTA disclosure deadline of January 1, 2025, for all specified businesses formed prior to 2024 is back in place.
This news comes on the heels of a federal district court’s ruling earlier this month in which a nationwide preliminary injunction against enforcing the beneficial ownership information (BOI) reporting requirements mandated by the CTA was put in place (Texas Top Cop Shop v. Garland (December 3, 2024) U.S. Dist. Ct., Eastern Dist. Of Texas, Case No. 4:24-CV-478). The December 3 ruling was widely expected to be appealed by the government and as of December 23, 2024, The Fifth Circuit lifted the nationwide injunction, finding that the federal government is likely to prevail in a constitutional challenge to the law. If you have not filed your BOI reports yet, please proceed with your compliance efforts before the deadline. You should also consult with legal counsel on any questions related to your specific circumstances.
Not sure where to start? Read our blog post, The Corporate Transparency Act (CTA): What You Need to Know, to learn more about key reporting requirements, timelines, and tips for filing. For additional assistance, please contact us or reach out to your Perkins advisor.