Corporate Transparency Act Reporting Rules In Limbo | Legacy Law Firm

The Corporate Transparency Act (CTA) Beneficial Owner Information Report rules are back on hold — again. On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit changed course and reinstated an injunction that temporarily stops the government from enforcing the CTA’s reporting requirements.

What’s Going On?

• December 3, 2024: A Texas court blocked the CTA’s requirement for certain companies to file Beneficial Ownership Information Reports (BOIR). FinCEN paused enforcement but allowed voluntary filing.
• December 23, 2024: The Fifth Circuit lifted the block, reinstating the rules.
• December 26, 2024: The Fifth Circuit reversed its decision, halting enforcement again.

What Should Companies Do?

The situation remains uncertain, with appeals moving quickly. Companies should stay ready in case the rules are reinstated. Voluntary reporting is still an option.

Stay tuned for updates!

Read more: Business Reporting Requirement Of CTA Temporarily Blocked

Read more: Act Now: Corporate Transparency Act