On December 23, 2024, the United States Court of Appeals for the Fifth Circuit issued an order lifting United States District Court Judge Amos Mazzant’s preliminary injunction which enjoined the Corporate Transparency Act (the “CTA”). While the court is scheduling an oral argument on the matter, for the time being, entities which are required to report under the CTA are now required to comply with the act’s requirements.
In the final footnote of the Fifth Circuit’s order, the court acknowledged the timing of their order may be viewed as unreasonable; however, they noted that lifting the preliminary injunction days before the filing deadline of December 31, 2024 would not unduly burden reporting companies as the CTA was passed nearly four years ago while the preliminary injunction was issued less than three weeks ago.
FinCen has provided additional guidance on its website to extend the deadlines for reporting companies. For more information, please see: https://fincen.gov/boi.
