On December 3, 2024, a federal district court in the Eastern District of Texas, Sherman Division, issued a Memorandum Opinion and Order granting a national preliminary injunction enjoining the Corporate Transparency Act (“CTA”) and enforcement of the CTA and its implementing regulations (the “Order”). As a result of this Order, the January 1, 2025 deadline to file a beneficial ownership information report (“BOIR”) with FinCEN has been stayed, and reporting companies are not required to file a BOIR while the preliminary injunction remains in effect. 

The duration of the preliminary injunction is temporary, and the Department of Justice filed a Notice of Appeal on December 5, 2024. If in the future the Order is no longer in effect, reporting companies could be required to file BOIRs with FinCEN in short order. Accordingly, reporting companies would be well served to continue gathering required beneficial ownership information so that they are prepared to file a BOIR if necessary.    

Although not required, reporting companies may file BOIRs on a voluntary basis while the Order remains in effect. FinCEN has issued an alert confirming the agency’s intention to comply with the Order, which can be viewed on their website here: https://www.fincen.gov/boi.