The nationwide stay suspending filing requirements on beneficial ownership information has been reinstated. The updated deadlines announced by FinCEN provided in our last Legislative Update are currently inapplicable as enforcement of reporting requirements are now on hold, again. We are monitoring the situation closely and will provide further relevant updates.
The Corporate Transparency Act (CTA) originally established a deadline of January 1, 2025 for qualifying business to disclose ownership information to FinCEN. APRO published an Alert on in early 2024 regarding the reporting requirements. On December 3, 2024, a federal district court in Texas issued an injunction halting CTA enforcement and suspending BOI reporting requirements. Last week, on December 23rd, the Fifth Circuit Court of Appeals temporarily stayed the injunction, reinstating CTA enforcement and prompting FinCEN to issue revised reporting deadlines starting January 13, 2025, as reported in our recent updated Alert. Subsequently, on December 26th, the Fifth Circuit vacated the stay, pausing FinCEN’s reporting deadlines due to the reinstated injunction.
As a result of last week’s flurry of activity, RTO dealers and related entities are not required to file BOI reports at this time. As the past few days have demonstrated, this is a fluid and evolving situation. The Fifth Circuit’s recent decision aims to preserve the “constitutional status quo” as a merits panel considers the legal arguments surrounding the CTA’s validity. The appeal is proceeding on an expedited timeline. The forthcoming arrival of the new Trump Administration could also impact the Fifth Circuit case.
APRO will continue to monitor developments and provide future updates.
To view the original APRO Alert from February 28, 2024, click here.
