UPDATE: FIFTH CIRCUIT COURT OF APPEALS REINSTATES INJUNCTION ON BENEFICIAL OWNERSHIP INFORMATION REPORTING

On December 23, 2024, the U. S. Court of Appeals for the Fifth Circuit Court lifted the nationwide injunction issued on December 3, 2024 on enforcement of the Beneficial Ownership Information Report filing requirements under the Treasury Department’s Corporate Transparency Act.  On December 26, 2024, however, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s December 23, 2024 order granting a stay of the preliminary injunction. Accordingly, as of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not currently required to file beneficial ownership information with FinCEN.  Accordingly, FinCEN issued an ALERT on December 27, 2024 stating that reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.