Just when you thought you could take a breather, we’re back with a new update on the Corporate Transparency Act (CTA) saga. On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit vacated its own stay on the nationwide preliminary injunction regarding the CTA’s requirements for submitting beneficial ownership information (BOI) to FinCEN. As a result, reporting companies are no longer required to fulfill BOI report filing obligations–at least for the time being.
The Fifth Circuit explained this change of course based on the following reasoning:
“The merits panel now has the appeal, which remains expedited, and a briefing schedule will issue forthwith. However, in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is VACATED.”
If you’re feeling a bit overwhelmed by all this back-and-forth, you’re not alone! Parasec will continue to closely monitor the situation and provide updates as they become available.