The U.S. Court of Appeals for the Fifth Circuit has granted a stay of the nationwide injunction that previously restricted the federal government from enforcing the Corporate Transparency Act indefinitely. The CTA requires “reporting companies” registered to do business in the U.S. to disclose information regarding their owners, officers, and controlling persons to the Financial Crimes Enforcement Network, a bureau of the U.S. Department of Treasury. On December 3, the U.S. District Court for the Eastern District of Texas had issued a nationwide preliminary injunction suspending enforcement of the CTA.
As a result of the Fifth Circuit’s stay, the requirement to file beneficial ownership reports has been reinstated. Given that reporting companies may need additional to comply with the reinstatement of reporting obligations, FinCEN has extended the filing deadline to January 13, 2025.
