by Kent A. Brasseale, II and Heather M. Lobermann
The 5th Circuit Court of Appeals, on December 23, 2024, stayed the nationwide injunction which resulted in the filing requirements under the Corporate Transparency Act being reinstated. For most companies, this resulted in a new deadline for filing of January 13, 2025. On December 26, 2024, a different panel of the 5th Circuit of Appeals reinstated the nationwide injunction pending a decision on the merits on the constitutionality of the Corporate Transparency Act. For now, this means that the requirements to file are put on hold until the court determines whether or not the law is constitutional.
For more information about the Corporate Transparency Act and how the status of the law has evolved through the courts, please see our prior blogs:
- https://kddk.com/2024/01/25/corporate-transparency-act-what-your-business-needs-to-know/
- https://kddk.com/2024/12/04/corporate-transparency-act-and-reporting-rule-enjoined-nationwide/
- https://kddk.com/2024/12/24/urgent-update-corporate-transparency-act-nationwide-injunction-lifted-reporting-required-as-early-as-january-13-2025/
As our prior communication about this law has indicated, the status of the law is ever-fluctuating. There is no guaranty that a further extension will be granted by the Department of Treasury should the injunction be lifted again or should the law be held constitutional. Therefore, due to the volatility of the law and to avoid the grave consequences for failure to comply with the law should the law ultimately be upheld, voluntary filing might be advised to ensure timely compliance.
How Can KDDK Help My Entity Comply?
If we can be of assistance with any questions you have regarding the CTA, please contact attorneys Kent (“KAB”) Brasseale II at kbrasseale@kddk.com, Heather Lobermann at hlobermann@kddk.com, or by phone at (812) 423-3183.
