Important Update on the Corporate Transparency Act: Back in Force with Short Extension to January 13
December 24, 2024In Texas Cop Shop vs. Garland, the U.S. Court of Appeals for the Fifth Circuit stayed the preliminary injunction issued by the lower District Court with respect to the Corporate Transparency Act (CTA). While the preliminary injunction was in effect, the nationwide enforcement of the CTA was suspended (pending more extensive litigation on the underlying constitutional issues). In removing the preliminary injunction, the Fifth Circuit explicitly declined to grant a grace period to reflect the preliminary injunction's ripple effect on the public’s ongoing compliance efforts, noting in a footnote that the businesses had “nearly four years” to prepare. As a result, the CTA snaps back into effect for everyone (including the particular plaintiffs in the case).
In response to its victory, FinCEN posted new guidance on its BOI Homepage, extending the filing deadline for pre-2024 Reporting Companies from Wednesday, January 1 to Monday, January 13. FinCEN also extended the filing deadlines for some 2024 Reporting Companies, depending upon when those Reporting Companies were formed or registered during 2024. For a detailed list of the extended filing deadlines for 2024 Reporting Companies, consult FinCEN’s new guidance.
We are continuing to monitor this highly fluid situation and will provide additional updates if anything changes. In the meantime, if you need any assistance, please visit our CTA Resource Center for additional information or to contact a member of our CTA compliance team.
If you have any questions about this latest CTA development or need help choosing the right compliance strategy, please contact your Herrick attorney or any member of Herrick's CTA team.
Mark A. Limardo at + 1 212 592-1494 or [email protected]
Theresa Fortin Balducci at + 1 212 592-1481 or [email protected]
Daniel A. Etna at + 1 212 592-1557 or [email protected]
Fred R. Green at + 1 212 592-5910 or [email protected]
Leah Kelman at + 1 973 274-2004 or [email protected]
Ellen L. Shapiro at + 1 212 592-1533 or [email protected]
Louis Tuchman at + 1 212 592-1490 or [email protected]
© 2024 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.