Important Corporate Transparency Act Update – December 27, 2024

As we previously reported, earlier this week, on December 23, 2024, the Fifth Circuit Court of Appeals issued an Order impacting millions of US small business owners. The Order granted the government’s emergency motion to stay a nationwide injunction issued by the District Court for the Northern District of Texas just a few weeks ago. FinCEN then extended the deadline for filing to January 13, 2025. However, on December 26, 2024, in a short, one-page order, a different panel of judges, from the same Fifth Circuit Court of Appeals, reinstated that injunction!

Thus, the injunction is back in force. The impact of the latest decision means that filings are not currently required, the government cannot enforce any penalties for not complying and the January 13, 2025, deadline for the filing of initial beneficial ownership information reports under the Corporate Transparency Act (CTA) is on hold.

Corporate Transparency Act Team

Ryan A. Biller                          rbiller@chuhak.com

Jeffrey M. Heller                      jheller@chuhak.com

Bryan M. Montana                  bmontana@chuhak.com

Janet Wagner                         jwagner@chuhak.com

Mitchell D. Weinstein              mweinstein@chuhak.com

Anne M. Wolniakowski           awolniakowski@chuhak.com

This Chuhak & Tecson, P.C. communication is intended only to provide information regarding developments in the law and information of general interest. It is not intended to constitute advice regarding legal problems and should not be relied upon as such.