Beneficial Ownership Reporting Update: December 2024

As of December 26, 2024, Reporting Companies are not required to file initial Beneficial Ownership Information Reports. The Fifth Circuit Court of Appeals vacated a previous order reinstating the Corporate Transparency Act’s (CTA) reporting requirements, preserving the status quo while substantive arguments are considered.

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Key Updates

• Court Proceedings: The Fifth Circuit has expedited the appeal and scheduled oral arguments for March 25, 2025.
• Supreme Court Appeal: The Department of Justice has appealed to the Supreme Court seeking a stay of the nationwide injunction.
• Government Position: The DOJ maintains that the CTA is constitutional and will continue to defend the law as necessary.

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Current Guidance from FinCEN

FinCEN has clarified:

• Reporting companies are not currently required to file beneficial ownership reports.
• Companies will not be liable for failing to file while the order is in effect.
• Voluntary submission of reports is allowed but not mandatory.

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For further updates on the CTA and its reporting requirements, stay tuned as the legal landscape evolves.