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FinCEN has announced that reporting requirements for the Corporate Transparency Act are back in effect.
What Happened:
- As reported in an earlier alert issued by Lipsitz Green Scime Cambria, on December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated a nationwide preliminary injunction on the enforcement of the CTA.
- The preliminary injunction was initially ordered by the U.S. District Court for the Eastern District of Texas on December 2. 2024, in a lawsuit that challenged the constitutionality of the CTA, Texas Top Cop Shop, Inc., et al. v. Merrit Garland, Attorney General of the United States, et al.
- On January 7, 2025, the U.S. District Court for the Eastern District of Texas, issued an order in another lawsuit challenging the CTA, Smith, et al. v. U.S. Department of Treasury, et al. The January 7th ruling also ordered a stay on FinCEN’s enforcement of the CTA.
- On February 5, 2025, the U.S. Department of Justice filed an appeal of the January 7th ruling and asked that the stay on the enforcement of the CTA be lifted during the appeals process.
- On February 18, 2025, the U.S. District Court for the Eastern District of Texas granted the U.S. Department of Justice’s request and lifted the stay on the enforcement of the CTA.
- This ruling from February 18, 2025 gives FinCEN the authority to enforce the reporting obligations business owners have under the CTA.
Status of CTA Rapidly Changes (Again). BOI Filing Not Currently Required.
December 27th, 2024
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Shortly before 4:00 p.m. ET on December 27th, FinCEN issued an alert, stating that businesses are not currently required to file a Beneficial Ownership Information (BOI) report.
What Happened:
- As stated in Lipsitz Green Scime Cambria’s earlier alert, on December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit, issued a ruling which reinstated requirements and obligations for business owners under the Corporate Transparency Act (CTA).
- On December 26, 2024, the merits panel of the Fifth Circuit of the U.S. Court of Appeals, issued an order, vacating the Court’s December 23rd decision.
- The U.S. Court of Appeals’ December 26th ruling, reinstates a nationwide preliminary injunction on enforcing the CTA, which was initially issued by a U.S. District Court on December 3rd.
- Due to the December 26th Court ruling, FinCEN has announced that businesses are not currently required to file a BOI report and are not subject to liability if they fail to do so.
Click here for a printer-friendly PDF of this alert
The U.S. Court of Appeals has reinstated the enforcement of the Corporate Transparency Act (CTA).
What Happened:
- As detailed in Lipsitz Green Scime Cambria’s previous alert, on December 3, 2024, a U.S. District Court Judge in Texas, imposed a nationwide preliminary injunction on the enforcement of the CTA.
- The U.S. Department of Justice filed on appeal of the December 3rd decision.
- On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit, issued a ruling, which lifted the preliminary injunction on the enforcement of the CTA.
- FinCEN has announced that due to the various court rulings, the BOI filing deadline that had been set for January 1, 2025, has been extended to January 13, 2025.