Corporate Transparency Act Update: Deadline for compliance back in effect
As of December 23, 2024, it appears that the January 1, 2025, deadline for compliance with the Corporate Transparency Act (CTA) is in effect.
Earlier this month, we reported that the U.S. District Court for the Eastern District of Texas granted a nationwide preliminary injunction blocking enforcement of the CTA. On December 23, 2024, the Fifth Circuit Court of Appeals issued an order granting the government’s emergency motion for a temporary stay of the District Court’s order pending appeal. The Fifth Circuit specifically referenced the CTA compliance deadline in a footnote within the order without any extension of the deadline being granted.
As such, unless FinCEN or another applicable authority grants an extension, reporting companies should operate under the presumption that they must comply with CTA reporting requirements by the January 1, 2025, deadline.
A copy of the court order can be found here.
We will continue to monitor developments and keep our clients updated on any changes impacting CTA compliance. Please do not hesitate to contact us at any time if you have any questions or concerns.
