News and Events
Alert: Corporate Transparency Act Updates—Deadlines in Flux
The Corporate Transparency Act (CTA) continues to generate uncertainty, and reporting requirements are once again on hold. Here is a summary of the history:
Key Developments
- December 3, 2024: The US District Court for the Eastern District of Texas issued a nationwide preliminary injunction suspending enforcement of the CTA's reporting requirements in Texas Top Cop Shop, Inc. et al. v. Garland et al. Read our alert here.
- December 23, 2024: The US Court of Appeals for the Fifth Circuit issued a stay of the preliminary injunction, reinstating the reporting requirements. Following this, FinCEN extended the deadline for initial filings. Read our alert here.
- December 26, 2024: The Fifth Circuit vacated the December 23 stay, once again pausing the CTA's beneficial ownership information (BOI) reporting requirements.
- December 27, 2024: FinCEN issued updated guidance advising reporting companies they are currently not required to file BOI with FinCEN, but may continue to do so voluntarily pending a ruling on their appeal.
What Entities Should Do Now
Given the evolving legal landscape, entities that have not yet filed BOI with FinCEN should take proactive steps to avoid last-minute compliance challenges. Deadlines could be reinstated with little notice, and entities should gather the necessary information and documentation and prepare to file quickly.
The underlying litigation in Texas Top Cop Shop is ongoing. If the preliminary injunction is overturned or stayed again, deadlines could change rapidly. Kramon & Graham will continue to monitor the situation.
For more details on the CTA, including how to identify beneficial owners and what information to report, please contact us.
