Corporate Transparency Act Reporting Requirement Paused (Again)

Update: Corporate Transparency Act Reporting Requirement Paused (Again).

The rapidly changing requirements for Corporate Transparency Act (CTA) reporting continue. Just last week, a panel of the U.S. Court of Appeals for the Fifth Circuit issued an Order that reinstated the reporting requirement under the CTA, which earlier this month had been paused by the U.S. District Court for the Eastern District of Texas. On December 26, 2024, however, the full U.S. Court of Appeals for the Fifth Circuit issued a new Order vacating the portion of last week’s Order that had reinstated the reporting requirement. The effect of these back-and-forth Orders is that, as of today, reporting companies, including community associations, temporarily are not required to file beneficial owner information reports. The December 26, 2024 Order can be found here.

Again, the status as of December 26, 2024, is that covered entities, for now, are not obligated to file beneficial ownership reports because the injunction issued by the U.S. District Court for the Eastern District of Texas remains in place while the Fifth Circuit Court of Appeals considers the appeal. Reporting companies remain free to voluntarily file BOI reports with FinCEN pending a final determination regarding the constitutionality of the CTA, whenever that may occur. It is likely that requirements will continue to change, so we will continue to keep our clients informed. Updates can be found on the CWMEB Journal.