On December 26, 2024, a panel of the Fifth Circuit Court of Appeals vacated an order issued by a separate panel of the Fifth Circuit Court of Appeals on December 23, 2024 lifting an injunction issued by a federal court in Texas on December 3, 2024 which instituted a nationwide ban on the government’s enforcement of the Corporate Transparency Act (the “CTA”) and Beneficial Ownership Information Report (the “BOIR”) filing requirement. On December 31, 2024, the Department of Justice appealed to the December 26, 2024 order to the United States Supreme Court and its review of the appeal is currently pending.

This means that Reporting Companies (as defined under the CTA) who were previously required to file the BOIR prior to January 1, 2025 are not required to file while the preliminary injunction remains in effect. However, Reporting Companies may still elect to file the BOIR but such filing would be voluntary so long as the preliminary injunction is in effect.

For Reporting Companies that have already filed their BOIR, no further action is necessary at this time.

Reporting Companies that have not filed their BOIR are not required to during the time of the injunction. There is no indication of how long the preliminary injunction will last so Reporting Companies who have not filed their BOIR should monitor this situation closely and prepare all information necessary for filing in the event the injunction is lifted and the filing requirement is reinstated as the month of December has shown that that the situation may change rapidly and the United States Supreme Court may issue a ruling vacating the injunction at any time.

Please monitor our website for updates regarding the injunction and the CTA.