Client Notice: United States Fifth Circuit Court of Appeals Reinstates CTA Injunction: Effective December 26, 2024

On December 26, 2024, the United States Fifth Circuit Court of Appeals reversed a December 23, 2024 court decision that lifted the injunction on enforcement of the Corporate Transparency Act (CTA.) The result of this reversal is that reporting companies required by the CTA to submit a Beneficial Ownership Information Report to the U.S. Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, are no longer required to do so. All filing deadlines established shortly after the injunction was lifted, including the January 13, 2025 deadline for filings by reporting companies formed before 2024, are no longer in effect.

This ruling is not a final decision on the constitutionality of the CTA, either by the Fifth Circuit Court of Appeals or, potentially the U.S. Supreme Court. The Fifth Circuit will conduct a full trial on the constitutionality question in 2025. The back and forth actions of the courts with regard to the CTA have made it impossible to predict how this matter will develop in the days and weeks ahead. McLane Middleton will continue to monitor developments with the CTA and provide updates.