In the latest twist regarding the Corporate Transparency Act (CTA), the U.S. Court of Appeals for the Fifth Circuit, on December 26, 2024, vacated its own stay of the nationwide preliminary injunction that halted the enforcement of the CTA. Thus, the CTA’s reporting requirements are not currently in effect, though voluntary reporting is allowed. See links here to Part 1, Part 2, Part 3, Part 4, Part 5, and Part 6 in this series.
In response to the Fifth Circuit vacating its own stay, FinCEN issued guidance stating that reporting companies are not currently required to file a Beneficial Ownership Information Report (BOIR) as long as the Fifth Circuit’s order remains in effect. However, as FinCEN notes, reporting companies may continue to voluntarily submit BOIRs.
Further, oral arguments in the case are scheduled for March 25, 2025. Although this timeline provides reporting companies with some breathing room, PilieroMazza advises that reporting companies continue compiling their beneficial ownership information in case the Fifth Circuit’s order is once again modified. Again, reporting companies that wish to voluntarily file a BOIR may do so at any time.
If you need guidance concerning compliance with the CTA, PilieroMazza attorneys are here to assist you. Please contact Meghan Leemon, Abby Baker, Cole Fox, or another member of the Firm’s Government Contracts or Business & Transactions practice groups.
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If you’re seeking practical insights to gain a competitive edge by understanding the government’s compliance requirements, tune into PilieroMazza’s podcasts: GovCon Live!, Clocking in with PilieroMazza, and Ex Rel. Radio.
