On Monday, the U.S. Fifth Circuit Court of Appeals lifted a federal district court's December 3 injunction against the Corporate Transparency Act (CTA).
By George King
The appellate court's decision reinstates the CTA's beneficial ownership reporting requirement but extends to January 13 the reporting deadline for entities that existed prior to 2024.
On December 3, a U.S. District Court judge in Texas issued a nationwide preliminary injunction preventing the federal government from enforcing the CTA and its beneficial ownership reporting requirements. That injunction is no longer in effect, and, unless the courts take further action between now and January 13, business entities must comply with the CTA as we generally described in our January 4, 2024, article.
For more information on Monday's Court of Appeals ruling and the current status of the CTA, see this U.S. Chamber of Commerce article, "Corporate Transparency Act: Deadline to File Is Back. How to Comply."
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