The Corporate Transparency Act (“CTA”) and its beneficial ownership reporting requirements are back in effect. Earlier today, the U.S. Supreme Court granted the federal government’s request to stay (i.e., pause) the nationwide block on enforcing the CTA.
The merits of the CTA are still under review by the 5th Circuit Court of Appeals, with oral arguments scheduled for March 25, 2025. With the Supreme Court’s decision today, the CTA is currently enforceable unless the 5th Circuit rules otherwise based on the merits of the case or another branch of government takes action. For instance, in an attempt to eliminate the CTA, two Republican congressmen reintroduced the Repealing Big Brother Overreach Act on January 15, 2025. There is also the possibility that the executive branch could take action to halt the enforcement of the CTA.
Despite these possibilities, companies with reporting obligations should prepare to comply. When the CTA was initially reinstated on December 23, 2024, FinCEN extended the reporting deadline to January 13, 2025. However, the CTA injunction was reimposed on December 27, 2024, causing the January 13 deadline to pass without enforcement. We are currently waiting for FinCEN to issue a new reporting deadline given the latest ruling.
