Summary
On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit has reversed itself and vacated the stay of a preliminary injunction that had blocked enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) Reporting Rule. The decision can be found HERE. This latest development creates uncertainty around BOI reporting obligations as litigation continues.
Key Developments
- December 3, 2024: A Texas district court issued a preliminary injunction blocking CTA enforcement
- December 23, 2024: Fifth Circuit initially stayed (suspended) this injunction
- December 26, 2024: Fifth Circuit vacated its stay, effectively reinstating the injunction
Impact on Businesses
- Current Status: The preliminary injunction blocking CTA enforcement is now back in effect
- Legal Uncertainty: The Fifth Circuit will hear expedited arguments on the merits of the case
- Filing: Though they currently may not be required to, businesses can still file their Beneficial Ownership Information (BOI) filings using the BOI E-Filing System.
Next Steps
The Fifth Circuit will issue an expedited briefing schedule to address the constitutional challenges to the CTA.
The foregoing is not intended to be comprehensive nor constitute legal advice. If you would like to discuss your specific circumstances or would like more information, feel free to contact us at (212) 625-8505.