On December 23, 2024, the Fifth Circuit Court of Appeals granted a stay of the district court’s preliminary injunction (Texas Top Cop Shop, Inc. v. Garland, No. 24-40792 (5th Cir. 2024)) that temporarily reinstated compliance requirements under the Corporate Transparency Act. However, three days later, on December 26, 2024, a separate panel of judges from the same Court issued an order vacating the stay of the preliminary injunction granted on December 23. As a result, reporting companies are not currently required to file Beneficial Ownership Information Reports with FinCEN and are not subject to liability if they fail to do so while the order remains in place.
Over the course of this month, there have been multiple rulings by the courts regarding compliance requirements under the Corporate Transparency Act. We are closely monitoring this situation and will share updates on our Corporate Transparency Act webpage as new details become available. If you have any questions or would like to discuss how this recent ruling affects your company, please contact Catherine Than or Hector Delgado.