Your confidence in the American legal system may be going down by the day but there is yet another CTA / BOI legal update.
On Thursday night (December 26, 2024), the U.S. Court of Appeals for the Fifth Circuit put the injunction against the Corporate Transparency Act back into place. This means that once again filing a CTA Beneficial Ownership Information Report (BOIR) is voluntary not mandatory.
On December 27, 2024, FinCEN (the agency responsible for CTA / BOIRs) issued an alert regarding the reinstated injunction. FinCEN did not make any statement whether they will appeal the reinstatement of the injunction.
Also on December 27, 2024, the Fifth Circuit set the schedule for briefs to be submitted and an oral argument to be heard. The oral argument is scheduled for March 25, 2025. It is possible the injunction could remain in place until then. It is also possible that the CTA could be made mandatory before then. This situation has not been at all normal for the U.S. legal system.
Potential Outcomes
The injunction is removed and CTA BOIRs become mandatory once again, OR
Ultimately, the court finds CTA to violate the U.S. Constitution.
Your choices
File a voluntary CTA BOIR and be done with it, OR
Wait to see what happens in the legal proceedings.
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