On December 26, a panel from the Fifth Circuit Court of Appeals vacated a prior ruling from December 23 that had lifted a nationwide injunction on the CTA. This means that, for the time being, businesses are not required to submit a beneficial ownership information report to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
To provide some context, the CTA, which came into effect on January 1, 2024, mandates that incorporated businesses with 20 or fewer full-time employees must report beneficial ownership information. Initially, businesses formed before January 1, 2024, had until January 1, 2025, to file the required reports, while newly formed businesses were given 90 days to comply.
As of December 27, business owners are not obligated to submit any reports regarding beneficial ownership under the CTA, pending further legal developments.
Arnold Gruber, Ltd. will continue to keep you updated of any future court rulings, or changes in what is required of your business.
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