We apologize for yet another email about the CTA BOIR, but the Courts just keep waffling back and forth! We want to keep you in the loop.

Here's the latest:

In a surprising turn of events, on December 26, 2024, the Fifth Circuit Court of Appeals reversed its previous decision and reinstated the temporary nationwide injunction issued by the U.S. District Court for the Eastern District of Texas. This injunction effectively (again) pauses the enforcement of the Corporate Transparency Act (CTA).

That's the main takeaway. If you're interested in the details....

Background on the CTA and Initial Injunction:

Initial Ruling: On December 4, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al. (No. 4:24-CV-478), the U.S. District Court issued a nationwide injunction against the enforcement of the CTA. This act requires certain entities to report beneficial ownership information:

Organizations formed before January 1, 2024, had until December 31, 2024, to file their reports, even if they ceased operations during the year.

Entities formed in 2024 had 90 days from their formation date to comply, despite any dissolution.

For entities formed in 2025 and beyond, the filing deadline is within 30 days of formation.

All filings are to be made free of charge at FINCEN.gov/boi.

Recent Developments:

Lift of Injunction: On December 23, 2024, a panel from the Fifth Circuit initially lifted this injunction, allowing the CTA to be enforced. Following this, the Financial Crimes Enforcement Network (FinCEN) extended the deadlines for filing these beneficial ownership reports to accommodate the confusion caused by the back-and-forth judicial decisions.

Reinstatement of Injunction: However, just three days later, on December 26, 2024, the merits panel of the Fifth Circuit issued an order vacating the December 23 decision, thereby reinstating the district court's injunction. This latest order means that, for now, entities are not compelled to comply with the CTA's reporting requirements while the appeal is considered.

Sincerely,

Isaac D. Shutt

Attorney and Mediator

Shutt Law Firm, PLLC

Phone: 214-302-8197

Web: www.shuttlawfirm.com

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