- with readers working within the Business & Consumer Services industries
On December 23, 2024, the Court of Appeals for the Fifth Circuit stayed the nationwide injunction enjoining the U.S. government from enforcing the Corporate Transparency Act (the "CTA") and the corresponding reporting requirements. This new court development flips the switch to "on" for entities that are required to report under the CTA.
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). Under the Appellate Court's decision, the disclosures are due by January 1, 2025, although FinCEN has extended the reporting deadline to January 13, 2025 for most existing entities that are not exempt. Additional information on FinCEN's deadline extension and applicable to various entities can be found here, https://fincen.gov/boi. Act now to determine reporting requirements and to make a timely filing if necessary.
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.
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.
Read our previous coverage on the CTA here, and check here for any updates.
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.
