Once again, beneficial ownership information reporting can wait under FinCEN's Corporate Transparency Act (CTA).

On December 23, 2024, the motion panel of the U.S. Court of Appeals for the Fifth Circuit issued a stay of the nationwide injunction issued by the U.S. District Court for the Eastern District of Texas. The stay lifted the pause on filing beneficial ownership information (BOI) reports required under the Financial Crimes Enforcement Network (FinCEN).

A few days later, on December 26, 2024, the merits panel of the Fifth Circuit vacated the stay of the nationwide injunction issued by the Eastern District of Texas. Consequently, the deadlines for filing BOI reports are currently enjoined and cannot be enforced. 

The December 26th decision by the merits panel of the Fifth Circuit creates uncertainty regarding future enforcement of the Corporate Transparency Act. As of now, reporting companies are not required to file BOI reports, but may voluntarily choose to report. 

On December 31, 2024, the U.S. Department of Justice appealed to the U.S. Supreme Court, filing an emergency application to stay the injunction or narrow its application to the plaintiffs in the original case. On January 3, 2025, Justice Samuel Alito set a swift deadline of January 10, 2025, for the plaintiffs to submit their responsive pleadings to the government's motion. 

Justice Alito could then deny the motion for a stay, and the injunction would remain in effect, grant the motion resulting in nationwide compliance obligations, or narrow the injunction to apply only to the parties in the original case. 

Another possibility is that the injunction issued by the Eastern District of Texas could be lifted or impacted by a decision in the U.S. Court of Appeals for the Eleventh Circuit, which is currently reviewing a similar case on appeal. 

However, as of now, reporting companies are not required to file BOI reports, but companies should remain prepared for potential future compliance obligations. When the injunction was previously lifted, FinCEN provided brief “grace periods” for reporting companies to comply with filings. It would, therefore, be reasonable to expect FinCEN to provide these "grace periods" again if SCOTUS lifts the injunction, but it is not guaranteed.