- with readers working within the Business & Consumer Services industries
On December 26, 2024, the Court of Appeals for the Fifth Circuit
VACATED a ruling early this week to stay the nationwide injunction
enjoining the U.S. government from enforcing the Corporate
Transparency Act (the "CTA") and the corresponding
reporting requirements. This newest court development turns the
mandatory reporting requirement back to "off," according
to the Court for the purpose of preserving the "the
constitutional status quo while the merits panel considers the
parties' weighty substantive arguments."
The CTA requires that certain corporations, LLCs, and other
entities make disclosures to the U.S. Department of Treasury's
Financial Crimes Enforcement Network ("FinCEN") regarding
beneficial ownership (defined to include at least 25% ownership or
substantial control over a subject entity). Mandatory reporting is
now on hold until further court action. This decision is one of
several pending in the federal courts, including at the appellate
level. Further legal proceedings in this and other related cases
may alter or impact this case. Updates from FinCEN can be found
here, https://fincen.gov/boi.
Consistent with our previous guidance on the CTA, Lewis Roca will
advise clients on CTA compliance only if Lewis Roca and the client
have expressly agreed in writing to an engagement for that
purpose.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
