Kleinbard continues to track new developments relating to the Corporate Transparency Act (“CTA”). Earlier this month, we reported that a district court in Texas issued a nationwide preliminary injunction against enforcement of the CTA. Subsequently, on December 23, 2024, the injunction was challenged and a stay on the injunction was issued by the Fifth Circuit Court of Appeals.
However, on December 26, 2024, the Fifth Circuit Court of Appeals reversed course by vacating its previously issued order and issuing a new order reinstating the nationwide injunction.
As a direct result, the nationwide injunction is back in effect once again and the applicability of the extended reporting deadlines released by FinCEN on December 24, 2024, is paused. This means that reporting companies are no longer required to submit BOI reports unless and until enforcement of the CTA resumes. FinCEN has yet to comment on this development.
Reporting companies should continue to monitor developments, including updates from FinCEN and further court rulings. If you have any questions about the CTA, reinstatement of the injunction, and how they affect your business, please contact one of the members of our CTA committee, Howard Davis, Aylin Daldal or Gary Kan.
