December 24, 2024

In what has been a hectic month for the CTA and its upcoming filing deadline, we now have another dramatic turn of events in the 11th hour. This is less than ideal considering the CTA requires nearly every business in the U.S. to submit beneficial ownership information for the first time.

On Monday, the U.S. Court of Appeals for the Fifth Circuit granted the government’s emergency motion to stay the nationwide preliminary injunction on enforcement of the CTA, finding that the government is likely to prevail in its argument that the CTA is constitutional. The injunction, which was issued on December 3, 2024 in the U.S District Court for the Eastern District of Texas, halted the mandatory filing of beneficial ownership information by businesses created or registered in the U.S.

Following Monday’s decision, the filing requirement has been reinstated pending the outcome of the government’s appeal of the injunction. However, in light of the period the injunction was in effect, the government has extended the filing deadline for reporting companies as follows:

• Companies created or registered prior to January 1, 2024: January 13, 2025.

• Companies created or registered from January 1, 2024 through September 3, 2024: Within 90 days of creation or registration.

• Companies created or registered from September 4, 2024 through September 24, 2024: January 13, 2025.

• Companies created or registered from September 25, 2024 through December 2, 2024: Within 90 days of creation or registration.

• Companies created or registered from December 3, 2024 through December 23, 2024: Additional 21 days from original filing deadline.

• Companies created or registered from December 24, 2024 through December 31, 2024: Within 90 days of creation or registration.

• Companies created or registered on or after January 1, 2025: Within 30 days of creation or registration.

The Fifth Circuit has also ordered an expedited review of the government’s appeal, now awaiting the next available panel to hear the parties’ oral arguments. As for the future of the CTA, the appeal will merely determine whether the law may be enjoined until final resolution of the underlying case. The judgment in that case will decide the true fate of the CTA: Should the plaintiffs prevail, enforcement of the CTA will likely be permanently enjoined, leaving it to the government to rework its provisions or abandon it altogether.

In the meantime, be sure to submit your beneficial ownership information reports on time to avoid significant penalties for non-compliance.

Questions or comments? Please contact us at (646) 213-9044 or Admin@AndrieuxLaw.com.