Following up on our recent posting concerning the CTA (see CTA On Hold in the US, But . . . posted on December 9, 2024).
Earlier today (December 23, 2024), the United States Court of Appeals for the Fifth Circuit Order (24-40792) issued its order in response to the emergency appeal by the US government, concerning the nationwide injunction preventing the enforcement of filing requirements under the Corporate Transparency Act (CTA).
In short, the 5th Circuit Court held that since the government met its burden under Nken v. Holder, 556 U.S. 418 (2009), the government’s motion for a temporary stay of the district court’s order and injunction pending appeal was granted. In plain English, the order lifts the injunction imposed by the District Court.
Given the timing of this ruling, FINCEN issued an ALERT updating its Beneficial Ownership Information Reporting deadlines and providing some extensions:
- The due date for pre-existing companies has been shifted from January 1st to January 13th;
- For companies that had an initial filing due date while the injunction was in place, their initial filing deadline is now also January 13th;
- For any company formed while the injunction was in place, FINCEN has allowed an additional 21 days to make their initial filing (i.e., the filing due day changes from 90 days to 111 days); and
- For any company formed on or after January 1, 2025, the initial filing date will remain as 30 days from notice of formation.
While the 5th Circuit Court’s order lifts the injunction that was previously in effect, this doesn’t decide the matter on its merits and a full hearing and decision is still on the way. Stay tuned.