Dear Colleagues,

On December 24, 2024, Henson & Efron P.A. reported that the Fifth Circuit Court of Appeals issued a stay of the nationwide preliminary injunction on December 23, 2024, which meant that the reporting obligations under the Corporate Transparency Act (“CTA”) were once again enforceable, but under extended deadlines.

However, on December 26, 2024, the United States Court of Appeals for the Fifth Circuit vacated the stay of the preliminary injunction and once again enjoined enforcement of the reporting rule and the CTA “in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.”

As a result of this latest decision, reporting companies do not, at this time, have a legal obligation to submit beneficial ownership reports.

Due to continuing uncertainty around the enforcement of the CTA, reporting companies that have not yet filed beneficial ownership reports should be prepared to file on short notice if the preliminary injunction is once again stayed or overturned since a new filing deadline could be imposed on short notice.

Please see our prior article here regarding the temporary injunction that is back in effect.

The purpose of this communication is merely to provide general information and should not be construed as legal advice.