The on-again, off-again nationwide injunction barring enforcement of the Corporate Transparency Act (CTA) is back on.
The Fifth Circuit Court of Appeals will hear the case of Texas Top Cop Shop, Inc. v. Merrick Garland, Attorney General of the United States, et al. on an expedited basis and has reinstated the nationwide injunction of the CTA while it considers the constitutionality of the law. The Fifth Circuit set March 25, 2025, as the date for oral arguments on the merits of the case.
While the nationwide injunction is in place, FinCEN cannot enforce the CTA, and reporting companies cannot be penalized for failing to file Beneficial Ownership Information Reports, although they may continue to submit reports voluntarily.
On December 27, 2024, FinCEN issued an alert:
Impact of Ongoing Litigation – Deadline Stay – Voluntary Submission Only
In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
Developments have been fast-moving, and the situation remains fluid. Woods Rogers will continue to monitor the case and provide updates.
Read more in our previous update here.
