We are writing to inform you of a significant update regarding beneficial ownership information reporting requirements. In an ever-changing regulatory landscape, staying informed is crucial for businesses. One such regulatory area that has seen a number of recent developments involves the filing of beneficial ownership information under the Corporate Transparency Act (CTA).

Recent Court Decision

On December 23, 2024, the Fifth Circuit Court of Appeals initially approved the government’s emergency motion to stay a nationwide preliminary injunction, thus temporarily reinstating the CTA’s filing requirements. Many companies were then advised to comply by the new January 13, 2025 deadline.

However, a recent update (as of December 26, 2024) has brought changes to these requirements. A different panel from the Fifth Circuit, responsible for addressing the merits of the appeal, has reversed the earlier decision and reinstated the nationwide preliminary injunction pending appeal. This means that the government is currently prohibited from enforcing the CTA.

Implications for Businesses

• As of now, reporting companies are not required to meet the CTA’s pending filing deadlines, including the previously communicated January 13, 2025 deadline.
• This development is a part of ongoing legal proceedings, and further changes may occur as the appeal progresses.

More information may be found here: https://fincen.gov/boi

© 2024