In light of a recent federal court order, reporting companies are not currently required to file Beneficial Ownership Information Reports (“BOIRs”) with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) under the Corporate Transparency Act (“CTA”). Further, reporting companies are not subject to liability if they fail to do so while the court order remains in force.
Background
In early December 2024, the U.S. District Court for the Eastern District of Texas (in Texas Top Cop Shop, Inc. et al. v. Garland) issued a nationwide preliminary injunction temporarily blocking all enforcement of the CTA and its implementing regulation. That injunction suspended all filing deadlines regarding BOIRs. Thereafter, the federal government appealed the preliminary injunction and, in a decision issued on December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated all CTA filing deadlines.
Unexpectedly, a few days later on December 26, 2024, a separate panel of the same federal appeals court vacated the court’s December 23 order, with the result being that the CTA’s reporting requirements are “on hold” again, indefinitely.
Current Status of the CTA
Accordingly, reporting companies are not required to file their BOIRs while the nationwide preliminary injunction has been put back into effect under the December 26 court order.
Collins Hannafin, P.C. is continuing to monitor any further developments regarding the CTA. Should you have any questions, please contact Attorney Geraldine B. Macaisa.
