Latest on the CTA - Nationwide Preliminary Injunction and Appeal

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary nationwide injunction against the Corporate Transparency Act (CTA) and FinCEN’s Reporting Rule. The Department of Justice has since filed a Notice of Appeal which takes the issue to the U.S. Court of Appeals for the Fifth Circuit.

In an Alert posted on its website, titled, “Impact of Ongoing Litigation - Deadline Stay - Voluntary Submission Only”, FinCEN states, “In 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.”

Further Reading:

• Read the full Alert from FinCEN here.
• Read the Memorandum Opinion and Order filed 12/03/2024 here.
• Read the Notice of Appeal filed 12/05/2024 here.

CLAS Information Services CLAS strongly encourages potential reporting companies to consult with their legal counsel regarding their reporting obligations under the Corporate Transparency Act. We will continue to monitor the situation and will provide updates as we learn more.

For general information about the Corporate Transparency Act, please visit the CLAS CTA Reference Center.

QUESTIONS? Feel free to reach out to the CLAS CTA Team at 800.952.5696 or clascta@clasinfo.com.

For informational purposes only; content does not constitute legal advice.