Dec. 23rd Appeals Court Ruling Reinstates CTA & Beneficial Ownership Information Reporting Requirement

Update: The Corporate Transparency Act and its BOI reporting requirements are currently under litigation. Please refer to our most recent post for the latest developments.
On Monday, December 23, 2024, the Fifth U.S. Circuit Court of Appeals lifted the nationwide injunction issued earlier this month against the Corporate Transparency Act (CTA).
Monday’s ruling revives the immediate enforceability of the CTA, which means that reporting companies are required to file Beneficial Ownership Information (BOI) with FinCEN once again.
A FinCEN alert notified businesses that the reporting requirement was back in effect, with certain deadlines being extended.
The following compliance deadlines and obligations have been EXTENDED:
- Reporting companies created or registered prior to January 1, 2024, that had a filing deadline of January 1, 2025, now have until January 13, 2025, to file their initial reports with FinCEN.
- Reporting companies created or registered on or after September 4, 2024, that had a filing deadline between December 3, 2024, and December 23, 2024, now have until January 13, 2025, to file their initial reports with FinCEN.
- Reporting companies created or registered on or after December 3, 2024, and on or before December 23, 2024, now have an additional 21 days from their original filing deadline (i.e., 90 days from creation or registration, plus 21 days) to file their initial reports with FinCEN.
The following compliance deadlines and obligations remain UNCHANGED:
- Reporting companies created or registered on or after January 1, 2025, have 30 days to file their initial reports with FinCEN.
- Reporting companies that have already filed an initial report with FinCEN must submit an updated report within 30 days of certain events, including any change to information required to be reported to FinCEN.
On Tuesday, December 24, 2024, the Plaintiffs in Texas Top Cop Shop, Inc. v. Garland filed an emergency petition with the Fifth Circuit to review the panel’s decision and requested that a decision be made by January 6, 2025, which is one week before the extended compliance deadline described above.
As the case continues, it is critical for all corporate entities to continue monitoring developments in order to ensure compliance requirements are met.