The roller coaster of the Corporate Transparency Act (CTA) implementation continues. As discussed in a prior alert, a federal judge issued a temporary injunction for CTA pending resolution of the United States government appeal.   

On Dec. 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction entered in the case of Texas Top Cop Shop, Inc. v. Garland, pending the outcome of the Department of the Treasury’s ongoing appeal of the district court’s order. This action meant that beneficial ownership information (BOI) filings were once again required. The U.S. Treasury Financial Crimes Enforcement Network (FinCEN) immediately issued an alert notifying the public of this ruling, and recognizing that reporting companies may have needed additional time to comply with BOI reporting requirements, extended reporting deadlines to Jan. 13, 2025.  

On Dec. 26, 2024, however, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s Dec. 23, 2024 order. Accordingly, as of Dec. 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not currently required to file BOI with FinCEN. Subsequently, the U.S. Department of Justice asked the U.S. Supreme Court to halt a nationwide injunction against the CTA, which would once again allow enforcement of the law during the appeal process.  No action has been reported from the Supreme Court at the time of this writing.  

Until another action is taken, no filings under the CTA are required at this time. GHJ will continue to monitor the situation and issue updates as they arise. Please contact your GHJ engagement team or GHJ’s International Tax Practice with any questions.