In another legal twist in Texas Top Cop Shop, Inc. v. Garland, the Beneficial Ownership Information Report (BOIR) filing requirements for a Reporting Company has been blocked, again.

History of the Litigation

• On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction barring enforcement of the Corporate Transparency Act (CTA) and its BOI reporting requirements.
• On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit lifted the lower court’s temporary injunction, allowing the CTA to enforce its BOIR filing requirements for reporting companies pending the outcome of an appeal by the U.S. Treasury Department.
• However, on December 26, 2024, a different panel on the Fifth Circuit vacated that order, essentially reinstating the temporary injunction. As a result, reporting companies currently are NOT required to file a BOIR with the Financial Crimes Enforcement Network (FinCEN) during the appeal.

Nevertheless, reporting companies may voluntarily submit BOIRs with FinCEN, but they will not be subject to liability if they fail to do so while the December 26th order remains in force.

CTM is providing this alert on an information-only basis.  It is not intended to serve as legal guidance or advice.  For further clarification, please consult with an attorney.