News & Events

news & events / 12.27.24 /Kenneth R. Jacobs

Enforcement of CTA stayed again, New CTA Update December 27th, 2024

On December 23^rd, the Fifth Circuit granted the Government’s motion to stay the enforcement of the injunction against the enforcement of the Beneficial Ownership Information reporting requirements  of the Corporate Transparency Act (the “Reporting Rule”). FinCEN then extended the reporting deadline to January 13, 2025.

Yesterday, on December 26^th, the Fifth Circuit reinstated the injunction against enforcement of the Reporting Rule pending a hearing on the merits of the case. The Fifth Circuit reinstated the stay “in order to maintain the Constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.” The appeal remains expedited and the Appeals Court will issue a briefing schedule shortly. The Court’s full ruling appears HERE.

At this point we can’t predict what the impact of the reinstated stay might be, i.e., whether it will result in a further extension of the FinCEN reporting deadline beyond January 13^th while the case is considered, and (if the Government wins) whether FinCEN will grant a new grace period voluntarily after the Fifth Circuit ultimately issues its opinion on the merits. We will of course keep you informed as the case progresses.

In the meantime, have a happy New Year!