In a rapidly evolving legal landscape, a Fifth Circuit panel has reinstated a nationwide injunction against the enforcement of the Corporate Transparency Act, just three days after a different panel lifted the same injunction.
As a result, reporting companies are temporarily relieved of the obligation to file Beneficial Ownership Information Reports. However, the appeal to the Fifth Circuit’s merits panel has been expedited, and further substantive guidance is anticipated.
Despite the current pause, reporting companies are advised to continue gathering beneficial ownership information to ensure readiness to comply should the merits panel ultimately rule in favor of the government.
CTA Background
As we have previously reported, the CTA requires most privately held companies organized in the U.S. (including many non-wholly owned or controlled subsidiaries of public companies) and foreign companies that register to do business in a U.S. state to file an online report with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
Last Updated December 27, 2024
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Smith Hulsey & Busey is here to help clients navigate the Corporate Transparency Act and its implications for businesses. If you have any questions about the CTA, please contact Chris Dix at cdix@smithhulsey.com or Sarah Knight at sknight@smithhulsey.com .
This publication intends to offer readers information on current topics of general interest. It is important to note that this publication does not establish, suggest, or formalize the existence of an attorney-client relationship. The content herein should not be regarded as legal advice or opinion, as it may not be applicable to the specific circumstances of a particular situation. Given the continual evolution of guidance in various areas, it is advisable to periodically monitor for updates and seek legal counsel prior to making any decisions.
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