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ACCNJ ALERT |
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Dear {{CFirstName}}:
ALERT: Corporate Transparency Act Update
Following up on the Legal & Insurance portion of our Monthly Update, there has been another update to the ever-changing Corporate Transparency Act (CTA). As previously mentioned, on December 23, 2024, the Fifth Circuit Court of Appeals issued a decision, overturning a preliminary nationwide injunction that had been issued by a federal district court in Texas, which had prevented FinCEN from mandating the collection of beneficial ownership information (BOI) under the CTA. This decision allowed the government to enforce the CTA and its BOI reporting requirements for "existing entities.”
However, just three days following the Court's decision, on December 26, 2024, a merits panel of the Fifth Circuit vacated the stay of the temporary injunction to “preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.” As a result, yet again, enforcement of the CTA has been temporarily halted nationwide.
With the preliminary injunction set to remain in place while the Court considers the merits of the arguments, oral arguments are scheduled for March 25, 2025. That being said, on December 31st, the Department of Justice (DOJ) asked the Supreme Court to suspend the nationwide injunction against the CTA pending a decision on the merits from the Fifth Circuit. As a result, if the DOJ is successful in its efforts and the Supreme Court lifts the stay, the filing requirement will return (once again).
As we await further developments, companies subject to the CTA’s reporting requirements should continue to keep an eye out for changes to the CTA and how they will be enforced. ACCNJ staff will continue monitoring for updates and alert members accordingly. |
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Regards, Jon Slater Associated Construction Contractors of New Jersey |
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Associated Construction Contractors of New Jersey |