As a result of a different Fifth Circuit U.S. Court of Appeals decision on Dec. 26, the Corporate Transparency Act (CTA) FinCEN requirement has been delayed. National Newspaper Association Executive Director Lynne Lance sent this email to NNA members on Dec. 27:
“A different panel of the Fifth Circuit U.S. Court of Appeals has reinstated the injunction against the Corporate Transparency Act (CTA). The ‘merits panel’ reversed an earlier decision by a different group of judges, vacating their order and reinstating the injunction,” Lance wrote.
“The case remains on an expedited appeal, however, and there could be further action in the coming days. For now, however, the requirement to file Beneficial Ownership Information (BOI) reporting is not in force. Stay tuned for further updates,” Lance wrote.
The original deadline had been Jan. 1, 2025. The information about the decision is also available at: https://www.fincen.gov/boi
The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional. For that reason, the Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on Dec. 5, 2024 and separately sought of stay of the injunction pending that appeal with the district court and the U.S. Court of Appeals for the Fifth Circuit.
But, according to FinCEN, as of Dec. 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not currently required to file beneficial ownership information with FinCEN.
