UPDATE: On December 23, 2024, the Fifth Circuit Court of Appeals reversed the Texas federal court’s nationwide injunction against enforcement of the Corporate Transparency Act (CTA). This means, the CTA reporting requirements are now back in effect though the deadlines have been pushed back slightly—in most cases to January 13, 2025. Read our December 24, 2024 article and please contact Danielle Hunt or Jesse Kobernick if you have any questions.
The U.S. Treasury Department, Financial Crimes Enforcement Network (FinCEN) has responded to the nationwide injunction issued last week by a Texas federal district court enjoining the enforcement of the Corporate Transparency Act (CTA). FinCEN says that they will comply with the court’s ruling; that reporting companies are not currently required to file their beneficial ownership information with FinCEN; and reporting companies will not be subject to liability if they fail to file while the injunction remains in effect. The alert goes on to say that the Department of Justice (on behalf of the Treasury Department) has appealed the court’s ruling. Lastly, the alert confirms that reporting companies may still choose to voluntarily submit reports to FinCEN. The full alert from FinCEN is below and can also be found online here.
The Miller Nash team continues to follow CTA developments and will provide additional information as it becomes available. Click here to read our previous blog post on the nationwide injunction issued by the U.S. District Court for the Eastern District of Texas.
This article is provided for informational purposes only—it does not constitute legal advice and does not create an attorney-client relationship between the firm and the reader. Readers should consult legal counsel before taking action relating to the subject matter of this article.
