With Extended Deadlines Following Actions of Fifth Circuit and FinCEN.
By Bracewell.
On December 23, 2024, the US Court of Appeals for the Fifth Circuit granted an emergency motion for a temporary stay pending appeal requested by the federal government. The government submitted the motion in connection with its appeal of the previously reported nationwide preliminary injunction of the Corporate Transparency Act (CTA) that was issued by the US District court for the Eastern District of Texas in Texas Top Cop Shop, Inc., et al. v. Garland. The temporary stay of the preliminary injunction allows the Treasury Department to enforce the CTA and its implementing regulations.
The timing of the stay had the potential to leave many reporting companies with relatively few working days to comply with upcoming deadlines, including any reporting company that was in existence on January 1, 2024. Recognizing this issue, the Financial Crime Enforcement Network of the US Department of Treasury (FinCEN) provided additional time to comply on the following adjusted deadlines:
