CTA Beneficial Ownership Information Requirements No Longer Required
Friday,
December 27, 2024
- Another unexpected
turn of events in the
lawsuit regarding the
Corporate Transparency
Act (“CTA”). The case is
Texas Top Cop Shop v.
Garland, 5th Cir., No.
24-40792.
Late
yesterday (12/26/24),
the Fifth Circuit merits
panel reinstituted the
preliminary injunction
against the enforcement
of the CTA.
Therefore,
as of today (12/27/24),
there is no requirement
or deadline to file a
company BOI report
pursuant to the CTA.
Companies may still
voluntarily file their
BOI reports with FinCEN.
But for the time being,
they are not required to
comply with the CTA
reporting deadlines
(neither the original
January 1 deadline, nor
the revised deadline of
January 13). The ruling,
however, is still not a
final determination of
the CTA’s
constitutionality.
Instead, it only
temporarily halts
deadlines while the case
continues to proceed.
This could potentially
be appealed to the
Supreme Court and
further action is still
required within the
lower courts. All of
which could once again
change the deadlines and
requirements in the
future. Businesses
should remain cautious
and continue to
understand that this
recent pause may still
only be temporary.
For those of you
keeping score at home,
this has been the head
spinning turn of events
this month:
- December
03, 2024: District Court
in Texas suspends the
deadlines for the CTA
BOI reports.
- December
23, 2024: 5th Circuit
Court of Appeals
reinstates the January 1
deadline.
- December
23, 2024: FinCEN
announces a new deadline
of January 13 for the
CTA BOI reports.
- December 26, 2024: 5th
Circuit Court of
Appeals, on second
thought, decides that
the suspension of the
deadlines is the best
course as the lawsuit
continues to be
litigated.
We continue to recognize
this is very frustrating
and likely confusing to
all small businesses. A
simple Google search
right now of the
“Corporate Transparency
Act” will yield a long
list of outdated
information and
incorrect information.
We’ve seen news outlets,
as recent as this
morning, still providing
outdated updates from
the December 23rd court
decision – that is now
overruled. We will
continue to do our best
to update you in real
time so that you and
your members have the
most current
information.
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