OBLIC sent an Alert* on December 26, 2024, informing that the nationwide injunction enjoining enforcement of the Corporate Transparency Act (CTA) had been lifted. After we sent that Alert, the Fifth Circuit Court of Appeals issued an Order in Texas Top Cop Shop, Inc., et al. v Merrick Garland, U.S. Attorney General, et al., VACATING the stay of the preliminary injunction enjoining enforcement of the CTA and the Reporting Rule. With this ORDER, the nationwide injunction enjoining CTA will resume. 

The December 26, 2024 ORDER explained that on December 23, 2024, a motions panel of the court granted the government’s emergency motion for a stay pending appeal and also expedited the appeal to the next available oral argument panel.  

The ORDER stated that the merits panel now has the appeal. The appeal remains expedited and a briefing schedule will issue forthwith. The ORDER continued that in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel order granting the government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is VACATED. 

Late afternoon on December 27th, FinCEN issued an Alert indicating that In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. Reporting companies may continue to voluntarily submit beneficial ownership information reports. 

Please check the FinCEN website for updates. Note that the FinCEN website also warns of scams involving BOI reporting. Carefully consider your client discussions when deciding best options. Stay aware as developments continue.  

OBLIC will continue to monitor this situation. As always, please let us know if we may be of further assistance.  

*CTA Injunction Stayed – BOI Reporting Deadline Extended