Client Alert
As previously noted in our Client Alert, on December 3, 2024, the U.S. District Court for the Eastern District of Texas (the “District Court”) issued a nationwide preliminary injunction that temporarily blocked enforcement of the Corporate Transparency Act (“CTA”) and the U.S. Department of the Treasury's Financial Crimes Enforcement Network (“FinCEN”) related beneficial ownership information (“BOI”) reporting rules, and as noted in our most recent Client Alert, the government filed an emergency motion with the Fifth Circuit Court of Appeals (the “Court of Appeals”) to stay the District Court’s preliminary injunction pending its appeal of that injunction order.
Update as of December 24, 2024
On December 23, 2024, the Court of Appeals granted the government’s emergency motion for a stay of the District Court’s nationwide preliminary injunction. The Court of Appeals ordered an expedited hearing on the government’s appeal, but such a hearing has not yet been scheduled.
In response, FinCEN issued an Alert stating that reporting companies which otherwise would have been required to comply with the CTA’s BOI reporting requirements by January 1, 2025 now have until January 13, 2025 to file.
The Court of Appeals may still affirm the District Court’s institution of the nationwide preliminary injunction after the hearing. However, as of the date of this Client Alert, the CTA is in effect and all companies potentially subject to BOI reporting should be prepared to comply with the CTA’s BOI reporting requirements by the extended January 13, 2025 deadline.
We are closely monitoring developments in the case and will continue to provide updates.
