Supreme Court halts nationwide injunction on Corporate Transparency Act Update
The United States Supreme Court has made a significant decision regarding the Corporate Transparency Act (CTA), reinstating it and allowing its reporting requirements to be implemented while awaiting a challenge to the law’s validity in the U.S. Court of Appeals for the Fifth Circuit.
In response to an emergency request, the Supreme Court has lifted the nationwide injunction that had prevented the enforcement of the CTA. Initially issued in December 2024 by the U.S. District Court for the Eastern District of Texas, this injunction has now been overturned by the Supreme Court without providing any specific reasons for its decision. The Court’s official order can be accessed for further details.
With the legal issues surrounding the CTA still unresolved, the Financial Crimes Enforcement Network (FinCEN) had previously extended the deadline for CTA reporting to January 13, 2025. Although FinCEN has not yet released a statement in response to the Supreme Court’s ruling, it is expected that they will grant an additional extension to allow companies more time to comply with the reporting requirements of the CTA.
Considering these developments, it is advisable for organizations to resume their preparations for CTA reporting and to be ready to submit their filings once FinCEN issues updated guidelines on the reporting deadline. The law firm KMK suggests that entities stay proactive in their compliance efforts to ensure they meet all the necessary requirements set forth by the CTA.
