This is an update on the alert we issued last week regarding the Corporate Transparency Act (“CTA”) and its beneficial ownership information (“BOI”) reporting requirements affecting limited liability companies and certain other entities.
On December 26, 2024, the United States Court of Appeals for the Fifth Circuit vacated its previously issued stay and reinstated the nationwide preliminary injunction enjoining the enforcement of the CTA, including its BOI reporting requirements and corresponding deadlines. The appellate court stated that its ruling was “to preserve the constitutional status quo while [the court] considers the parties’ weighty substantive arguments in an expedited appeal”, with oral argument currently scheduled for March 25, 2025.
Following the appellate court’s decision to reinstate the injunction, FinCEN issued an update on its website advising that, in light of the recent federal court order, reporting companies are currently not required to submit BOI reports and are not subject to liability if they fail to do so while the injunction remains in effect. However, FinCEN will continue to accept BOI reports that are submitted voluntarily.
While no action is currently required, all reporting companies should nevertheless be ready to prepare and file their BOI reports in the event the injunction is lifted, and the BOI reporting requirements are reinstated.
If you have questions about the CTA, please contact one of our partners: Matthew S. Quinn, at (212) 447-5510 or mquinn@QMlegal.com, Christopher P. McCabe, at (212) 447-5520 or cmccabe@QMlegal.com, Simon Block, at (212) 447-5530 or sblock@QMlegal.com, Jonathan Krukas, at (212) 447-5560 or jkrukas@QMlegal.com, or Eric Thorsen, at (212) 447-5570 or ethorsen@QMlegal.com.
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