On Thursday, December 26, 2024, the United States Court of Appeals for the Fifth Circuit reinstated the nationwide injunction staying the CTA filing deadline. 
 
Reversing course from its ruling just three days prior on December 23, 2024, a different panel of judges for the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the same court’s December 23, 2024, order granting a stay of the preliminary nationwide injunction. Accordingly, as of December 26, 2024, the injunction issued by the federal district court in Texas Top Cop Shop, Inc., et al. v. Garland, et al. (No. 4:24-cv-00478 (E.D. Tex.)) is in effect and reporting companies are not currently required to file beneficial ownership information (BOI) with FinCEN. 
 
However, FinCEN will continue to accept voluntary submissions of BOI Reports, and the K&C CTA Compliance Team will continue to file for those clients that direct us in writing that they want to voluntarily file BOI Reports for their reporting companies. 
 
On the other hand, the K&C CTA Compliance Team will suspend its filing efforts for those clients that direct us that they desire to hold off and not file due to the nationwide injunction.
 
For reporting companies that are formed by K&C, the firm does have the responsibility to file an initial BOI Report as a company applicant. Such a report requires submission of Beneficial Ownership Information which K&C will continue to gather from the client. However, K&C will request consent to file such initial BOI Reports and, if the client declines to consent to filing with FinCEN, then the K&C CTA Compliance Team will hold the Beneficial Ownership Information until such time that there is further clarity as to the outcome of the nationwide injunction.
 
Reporting Companies that have already filed a BOI Report with FinCEN do not need to take any steps at this time.
 
If you have any questions, please reach out to CTACompliance@kaufcan.com and a member of the team will help answer your questions.

The contents of this publication are intended for general information only and should not be construed as legal advice or a legal opinion on specific facts and circumstances. Copyright 2025.