CTA – Update December 24, 2024
Yesterday afternoon, December 23, 2024, we learned that the United States Court of Appeals for the Fifth Circuit revived the immediate enforceability of the Corporate Transparency Act (CTA). The Fifth Circuit’s decision stayed the preliminary injunction issued on December 3, 2024, and allows the federal government to continue enforcing the CTA while litigation in Texas Top Cop Shop, Inc., et al. v. Garland, et al. continues.
Following the ruling, FinCEN announced an extension of the filing deadline to January 13, 2025 (from January 1, 2025). Reporting Companies that are created or registered on or after January 1, 2025, have thirty (30) days to file their BOI reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
Why This Matters: Compliance with the CTA is again required. Existing Reporting Companies are now required to file their BOI reports by January 13, 2025. Reporting Companies that are created after January 1, 2025, have thirty (30) days after creation to comply with the BOI. Even though an extension was granted, the deadline is quickly approaching. It is imperative to confirm your filing requirements (if any) and do so timely to avoid any fines and penalties.
This situation is rapidly evolving. We anticipate the challengers in this suit to seek further review from the Fifth Circuit or the United States Supreme Court. We will continue to review and monitor the situation and keep you apprised of the latest developments. Please feel free to reach out to Rich Bar (rbar@gkglaw.com) or Frank Beninato (fbeninato@gkglaw.com) if you have any questions.