Please Check FinCEN’s Website to Confirm the Deadline that Applies to Your Company
On December 23, 2024, the United States Court of Appeals for the Fifth Circuit entered an order lifting a nationwide injunction of the Corporate Transparency Act (CTA) that had been put in place on December 5, 2024, in the case Texas Top Cop Shop, Inc. v. Garland in the U.S. District Court for the Eastern District of Texas. The District Court had ruled that the plaintiffs were likely to succeed on the merits of their claim that the CTA was unconstitutional. The Fifth Circuit’s order lifting the injunction reached a different conclusion, however, stating “the government has made a strong showing that it is likely to succeed on the merits in defending CTA’s constitutionality.” The appellate court’s order also placed the appeal on an expedited schedule for final resolution.
Courts across the country have reached conflicting rulings regarding the constitutionality of the CTA, although most courts have determined that the CTA is constitutional. It is unclear whether the issue will reach the Supreme Court.
The Financial Crimes Enforcement Network (FinCEN), the division of the U.S. Treasury Department that regulates and enforces the CTA, has granted most companies an extension of time to January 13, 2025, to file their initial reports under the CTA. Prior to the extension, the initial reporting deadline for most companies was January 1, 2025. However, different deadlines apply to some companies, so companies should carefully review FinCEN’s guidance to determine which deadline applies to them.
Further information about the CTA is available on FinCEN’s website. Also, check out our prior Client Alerts about the CTA:
- Client Alert: U.S. District Court Orders Nationwide Injunction of Corporate Transparency Act; Compliance Now Voluntary (Dec. 12, 2024)
- Client Alert: Millions of U.S. Businesses Face New 2024 Year-End Reporting Deadlines Under the Corporate Transparency Act (Oct. 10, 2024)
For CTA questions, please reach out to your Raines attorney or e-mail a member of our CTA team at RainesCTA@raineslaw.com.
The Raines CTA Team:
Derek Dundas
Email: ddundas@raineslaw.com
Direct: 310-620-9338
David Madden
Email: dmadden@raineslaw.com
Direct: 312-704-2177
Jonathan Richter
Email: jrichter@raineslaw.com
Direct: 310-730-4375
Clare McKeown
Email: cmckeown@raineslaw.com
Direct: 312-625-9048
Johnathan Jianu
Email: jjianu@raineslaw.com
Direct: 424-343-8632