*This article is an update to the previous versions:
- The Corporate Transparency Act (Updated on 12/18/2024)
- The Corporate Transparency Act (Updated on 12/9/2024)
- The Corporate Transparency Act (Updated on 12/4/2024)
- The Corporate Transparency Act (Updated on 8/26/2024)
- The Corporate Transparency Act (Updated on 2/1/2024)
FIFTH CIRCUIT COURT OF APPEALS STAYS PRELIMINARY INJUNCTION OF THE CORPORATE TRANSPARENCY ACT
On December 23, 2024, the Fifth Circuit Court of Appeals granted a stay over the preliminary nationwide injunction against the Corporate Transparency Act (Act) created by the December 3, 2024 decision in Texas Top Cop Shop, Inc., et al. v. Garland, et al. The Fifth Circuit Court of Appeals also issued an order reinstating the January 1, 2025 beneficial ownership information (“BOI”) reporting deadline.
The Fifth Circuit Court of Appeals court order can be read here. Please note this order just stays the initial preliminary injunction and is still not a final ruling on the Act’s constitutionality. To that end, the Fifth Circuit’s order directed the appeal in this lawsuit be expedited to the next available oral argument panel.
At present, the Fifth Circuit’s order means all reporting companies created or registered to do business before January 1, 2024, have until January 1, 2025, to file their initial BOI reports.
CAI continues to track federal courts challenges of the Act and is in contact with the United States Department of Treasury urging an administrative delay be issued due to the chaos and confusion created by these recent court rulings, Congress’s decision not to take legislative action to extend the filing deadline, and the end of year holidays.