image

Update: Corporate Transparency Act

January 24, 2025
Eric M. Pelz

Partner

View profile

The on-again, off-again Corporate Transparency Act is, for the time being, back on again after the Supreme Court Justices voted 8-1 to lift the injunction issued by U.S. District Court Judge Amos Mazzant on December 3, 2023. That injunction had been lifted by the Fifth Circuit on December 23, 2023, granting an extension of beneficial ownership reporting requirements from January 1, 2025, until January 13, 2025.  However, four days later, on December 27, 2023, the Fifth Circuit reversed course and reinstated the injunction, pending oral arguments in the case set for March 25, 2025. On December 31, 2023, the U.S. Dept. of Justice asked the Supreme Court to rule on Judge Mazzant’s ability to issue universal injunctive relief.

Today’s ruling did not reinstate the January 13 deadline to file beneficial ownership information with FinCEN and neither the Treasury Department nor DOJ have indicated when such filings must be submitted by. This is a developing situation that could change as it has several times in the last month. Please reach out to our corporate legal team for advice and guidance.

As to certain broader issues of law, in today’s ruling, Justice Neil Gorsuch concurred in the decision, stating that he would even “go a step further and, as the government suggests, take this case now to resolve definitively the question whether a district court may issue universal injunctive relief.” Justice Ketanji Brown Jackson was the lone dissent, saying that she did not see the need for the Supreme Court to intervene as DOJ did not prove exigent circumstances. “The Government has provided no indication that injury of a more serious or significant nature would result if the Act’s implementation is further delayed while the litigation proceeds in the lower courts.” Justice Jackson further explained that appeal to the Fifth Circuit was already expedited, and the government had also delayed enforcement of the Act for four years, eliminating any argument that substantial harm would occur from further delays.

See more here: https://aboutblaw.com/bgZN