Court of Appeals Says Corporate Transparency Act Is Enforceable Again – FinCEN Extends Compliance Deadlines

On December 23, 2024, the United States Court of Appeals for the Fifth Circuit stopped an order blocking the nationwide enforcement of the Corporate Transparency Act (CTA), pending resolution of the Department of the Treasury’s ongoing appeal of the order in the case of Texas Top Cop Shop, Inc. v. Garland.  Shortly after the publication of the court’s opinion, the Financial Crimes Enforcement Network (FinCEN) extended the compliance deadline under the CTA for reporting companies, given the uncertainty in recent weeks since the enforcement of the CTA was blocked by the Texas District Court.

1. Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)
2. Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
3. Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
4. Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
5. Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.

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