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Corporate Transparency Act (“CTA”) Update - Important Developments

Fort Lauderdale, Fla. (February 7, 2025)

1. Key Updates

  • On January 7, 2025, a federal court in Texas issued an injunction temporarily halting enforcement of the CTA and its reporting requirements.
     
  • On February 5, 2025, the Department of Justice (“DOJ”) appealed this decision and filed a motion requesting a stay of the injunction pending the appeal, aiming to resume enforcement.

2. Implications If the Stay Is Granted

If the stay is granted, the Financial Crimes Enforcement Network (“FinCEN”) may extend the CTA compliance deadline by 30 days and consider modifying reporting requirements to reduce the burden on low-risk entities while prioritizing enforcement efforts against entities posing the most significant risks.

3. Current Status

  • The CTA’s enforcement is currently suspended pending the appeal outcome.
     
  • The outcome of the appeal and any potential stay will determine the future of the CTA’s enforcement.
     
  • While a specific decision date has not been set, it is anticipated that the court will rule on the motion for a stay relatively soon.
     
  • Reporting companies can still voluntarily submit beneficial ownership information reports using FinCEN’s E-Filing system at www.fincen.gov/boi

4. What Happens Next?

For the latest information on the CTA, visit our firm’s website regularly. If you need help with CTA compliance strategies or understanding recent changes, our attorneys are ready to assist you. To make sure your company is prepared,  you may find it advisable to gather the necessary ownership information now. You may also consider voluntarily filing your beneficial ownership information. Businesses may find themselves in need of quick action if the injunction is lifted or if the CTA’s reporting requirements are reinstated.

We are committed to providing prompt updates on new court decisions and FinCEN guidance to help you stay fully informed.

Author:

Soo Jin Isicoff, Associate

Editors:

Jane C. Luxton, Managing Partner - Washington, D.C.

Andrew Zuckerman, Associate 

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