Mark L. Brasee
402.978.5306mbrasee@fraserstryker.com email Mark
On December 26, 2024, the emergency stay granted by the Fifth Circuit Court of Appeals was vacated. Consequently, the nationwide preliminary injunction granted by a federal district court in Texas on December 3, 2024, is back in effect. This injunction enjoins the Financial Crimes Enforcement Network of the United States Department of Treasury (“FinCEN”) from enforcing the Corporate Transparency Act (“CTA”).
As a result, no reporting company (whether formed prior to or after January 1, 2024) currently has any reporting obligations under the CTA and are not subject to liability if they fail to file initial reports or update reports already completed, unless and until the injunction is stayed, narrowed, or overturned on further appeal. Please review Fraser Stryker’s prior guidance regarding the CTA’s effect on companies organized and/or operating within the United States to determine if your entity is affected.
A final decision regarding the enforceability of the CTA may still take months to complete. The Fifth Circuit Court of Appeals published its briefing and oral arguments schedule for the case, with any resulting decisions expected in April or May. However, several factors could alter this timeline, particularly if the federal government seeks emergency relief. Fraser Stryker will continue to provide updates regarding further material developments as they arise.
This article has been prepared for general information purposes and (1) does not create or constitute an attorney-client relationship, (2) is not intended as a solicitation, (3) is not intended to convey or constitute legal advice, and (4) is not a substitute for obtaining legal advice from a qualified attorney. Always seek professional counsel prior to taking action.
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