Only days after lifting the nationwide preliminary injunction, the Fifth Circuit Court of Appeals vacated their decision to stay the district court’s preliminary injunction enjoining enforcement of the Corporate Transparency Act. In the December 26, 2024 decision, Fifth Circuit stated:
The merits panel now has the appeal, which remains expedited, and a briefing schedule will issue forthwith. However, in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is VACATED.
Texas Top Cop Shop, Inc. v. Garland, No. 24-40792 (5th Cir., Dec. 26, 2024) (vacating December 23, 2024 Fifth Circuit Court of Appeals decision staying preliminary injunction).
Accordingly, as of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not currently required to file beneficial ownership information with FinCEN.
As of December 27, 2024, the Financial Crimes Enforcement Network (“FinCEN”) website states that “[i]n light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.” Beneficial Ownership Information, FinCEN, https://fincen.gov/boi (last visited Dec. 27, 2024).
Given the expedited nature of the appeal, reporting companies should expect more updates regarding the Corporate Transparency Act to be forthcoming.
Rothwell Figg’s post on the Corporate Transparency Act is available at: https://www.rfemerge.com/2024/09/24/the-corporate-transparency-act-what-you-need-to-know-to-comply-with-the-new-requirements/.
Rothwell Figg’s post regarding the district court’s preliminary injunction is available at: https://www.rfemerge.com/2024/12/19/update-the-corporate-transparency-act/.
Rothwell Figg’s post regarding the Fifth Circuit Court of Appeals decision to stay the district court’s preliminary injunction is available at: https://www.rfemerge.com/2024/12/26/update-corporate-transparency-act-reinstated-by-appeals-court-january-1-deadline-looms/.
Disclaimers: The information contained in this posting does not, and is not intended to, constitute legal advice or express any opinion to be relied upon legally, for compliance or investment purposes or otherwise. This information is merely for educational purposes and does not create any attorney-client relationship between Rothwell Figg and you or your company or create any duties on Rothwell Figg to advise or assist in compliance with the Corporate Transparency Act. If you would like to obtain legal advice relating to the subject matter addressed in this posting, please consult with your qualified legal counsel. The information in this post is also based upon publicly available information, presents opinions, and does not represent in any way whatsoever the opinions or official positions of the entities or individuals referenced herein.