Pending further action in the Fifth Circuit Court of Appeals or the U.S. Supreme Court, neither the original CTA filing deadlines nor the extended filing deadlines announced by FinCEN on December 23 remain in effect. Reporting companies may file beneficial owner reports if they so elect while awaiting further developments.
On December 26, 2024, a merits panel of the Fifth Circuit Court of Appeals reversed (yet again) the course of the Corporate Transparency Act (CTA) and reinstated the nationwide preliminary injunction against enforcement of the CTA, at least for now, “in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.” The merits panel also expedited the appeal and stated that a “briefing schedule will issue forthwith.”
As we have noted in prior Alerts, on December 3, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction enjoining enforcement of the CTA and FinCEN’s reporting rule. On December 23, a motions panel of the Fifth Circuit Court of Appeals granted the government’s motion to stay the appeal and later that day, FinCEN issued new extended reporting deadlines.
Pending further action in the Fifth Circuit Court of Appeals or the U.S. Supreme Court, neither the original CTA filing deadlines nor the extended filing deadlines announced by FinCEN on December 23 remain in effect. Reporting companies may file beneficial ownership information reports if they so elect while awaiting further developments.
About Duane Morris
Duane Morris is actively monitoring developments regarding the CTA and issuing Alerts on the topic. Duane Morris will provide advice to clients regarding CTA compliance only when explicitly engaged to do so in writing. To receive future Duane Morris Alerts on the CTA, you can register for our CTA mailing list.
For More Information
If you have any questions about this Alert, please contact Thomas R. Schmuhl, Jocelyn Margolin Borowsky, Joel N. Ephross, Bruce H. Jurist, Hope P. Krebs, Lee J. Potter, Jr., any of the attorneys in our Corporate Transparency Act, the attorney in the firm with whom you are regularly in contact, or Michael A. Gillen or any of the professionals in the Tax Accounting Group.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.