On December 6, 2024, MPS issued an Alert advising that a U.S. District Court judge in Texas had entered a preliminary injunction:
- barring the enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) filing requirements;
- suspending the deadline of January 1, 2025 for the filing of BOI reports; and
- declaring that entities subject to the CTA need not comply with the CTA’s filing deadline of January 1, 2025, pending further order of the court.
In that Alert, we noted that the Federal agency charged with enforcing the CTA, the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), had not yet provided guidance in response to the court’s entry of the injunction.
This past weekend, FinCEN posted a notice on its website advising that the U.S. Department of Justice, on behalf of the Treasury Department, has filed a Notice of Appeal, and further stating as follows:
“While this litigation is ongoing, FinCEN will comply with the order issued by the U.S. District Court for the Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership reports.”
Explore our recent article outlining the resources available to assist in complying with the Corporate Transparency Act.