Key Information:

On Thursday, December 26, the Fifth Circuit Court of Appeals restored a nationwide injunction suspending enforcement of the Corporate Transparency Act (CTA). The December 26 order reversed the Fifth Circuit’s earlier December 23 stay of the nationwide preliminary injunction, which temporarily restored the CTA’s filing deadline.

What this means:

The Treasury Department is once again prohibited from enforcing the CTA’s rules. According to the Treasury Department update, businesses that would otherwise be required to file Beneficial Ownership Information (BOI) reports before the CTA’s statutory deadline are not currently obligated to do so, though they “may continue to voluntarily submit beneficial ownership information reports.”

Next Steps:

While enforcement of the CTA is paused, business should stay informed on further developments and court rulings regarding the CTA.

Important Update: Corporate Transparency Act Enforcement Again Suspended

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