RBS News

Written By: Kimberly S. Basta | 2024-12-27

CORPORATE TRANSPARENCY ACT IS ENJOINED AGAIN

In an unexpected turn of events, as of yesterday evening the beneficial ownership reporting obligations under the Corporate Transparency Act (“CTA”) have again been paused.

On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit issued an order in Texas Top Cop Shop, Inc. v. Garland vacating the December 23, 2024 order that it earlier issued and which reinstated CTA reporting obligations. In the decision issued late yesterday evening, the Court decided to “preserve the constitutional status quo” during the appellate process.  This latest decision means the December 3, 2024 preliminary injunction enjoining enforcement of the CTA is back in effect.  

The U.S. Treasury Department’s Financial Crimes Enforcement Network should soon update its website to reflect this development and to indicate again that reporting companies are not obligated to (but may voluntarily) report beneficial ownership information while the preliminary injunction is in effect. 

We continue to counsel our clients to be prepared to file a Beneficial Ownership Information Report if their business meets the reporting obligations pending further action from the court.  Should you have further questions please contact Kimberly Basta at kbasta@rbslaw.com.