Beneficial Ownership Information Reporting (BOIR) the Corporate Transparency Act (CTA) IS NO LONGER SUSPENDED by Court Order
As of December 23rd, 2024, FinCEN is no longer enjoined (i.e. restrained) from enforcing Beneficial Ownership Information Reporting (BOIR) the Corporate Transparency Act (CTA). The Fifth Circuit, United States Court of Appeals, has granted the US Government’s emergency motion to stay the lower court’s order to enjoin FinCEN from enforcing BOIR under the CTA. Text of the opinion can be found here. Because this is brand new information, only a week from the original January 1st, 2025, deadline, it remains to be seen how FinCEN will react to this, and whether it will extend the original deadlines or not.
On December 3rd, 2024, the US District Court for the Eastern District of Texas, see Texas Top Cop Shop, Inc. v. Garland, E.D. Tex., No. 4:24-cv-00478, 12/3/24, issued an order enjoining (i.e. restraining) FinCEN from enforcing BOIR under the CTA. This order has been stayed by the Court of Appeals (5th Circuit), although the Appeals Court has yet to rule specifically on the merits of the Dist. Ct. case. *** OUR RECOMMENDATION AT THE TIME: A matter of “best practice” would be to file your report. This is preliminary injunction, temporarily blocking the enforcement of the CTA and its reporting requirements. This injunction can be removed or modified at any time. Because of this, if you’re not going to report your company’s BOIR, we strongly encourage you to be extra vigilant in monitoring legal developments closely.
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