Update on Status of Corporate Transparency Act

The Corporate Transparency Act remains blocked despite DOJ Stay Request.

As previously reported, on December 3, 2024, the U.S. District Court for the Eastern District of Texas granted a nationwide preliminary injunction that enjoins the federal government from enforcing the Corporate Transparency Act (“CTA”). In the ruling, the Court questioned its constitutionality and its impact on small businesses. The ruling means that businesses do not have to comply with the Jan. 1, 2025, filing deadline.

On December 5, 2024, the U.S. Treasury Department appealed the U.S. District Court’s order.

On December 12, 2024, the district court ordered the plaintiffs to submit their response to the government’s motion by noon CT on Monday, Dec. 16, 2024.

On December 13, 2024, the DOJ filed an emergency motion with the U.S. Court of Appeals for the 5th Circuit to stay the injunction. On that same day, the 5th Circuit, on its own initiative, accelerated the briefing schedule the DOJ had proposed so that the appellate court would be able to fully consider the issues by Dec. 19.

On December 17, 2024, the U.S. District Court for the Eastern District of Texas ruled that the Corporate Transparency Act (CTA) will remain blocked pending the U.S. Department of Justice’s (DOJ) appeal of the nationwide injunction.

At this point in time, it is unclear whether or when the injunction might be lifted and, if it is lifted, how much time companies would then have to comply with the Beneficial Ownership Information Report, if it takes effect.