The nationwide injunction against the enforcement of the Corporate Transparency Act (CTA), including beneficial ownership information (BOI) reporting requirements, has been reinstated, pausing enforcement yet again.

Here is a brief overview of the legal back-and-forth that took place.

On December 03, 2024, the US District Court of the Eastern District of Texas issued a preliminary nationwide injunction against the enforcement of the CTA, including the BOI reporting requirements

On December 05, 2024, the government appealed the injunction to the Fifth Circuit Court of Appeals.

On December 23, 2024, the Fifth Circuit Court of Appeals issued an order effectively reinstating the CTA and the BOI reporting requirements. Following the court order, FinCEN issued an alert extending certain BOI reporting deadlines (for many reporting companies, the extended deadline was January 13, 2025).

On December 26, 2024, the Merits Panel of the Fifth Circuit Court of Appeals issued an order the December 23, 2024, order (issued by a different panel of the same court). The new order reinstated the nationwide injunction from December 03, 2024.

On December 27, 2024, FinCEN issued a statement confirming that reporting companies will not be subject to liability if they do not file their reports during this period. Voluntary filings are still allowed.

While the reinstated injunction is in effect, reporting companies are not required to file or update previously filed BOI reports. However, given the fluid nature of the situation, reporting companies should pay close attention to statements about the CTA made by FinCEN and the incoming administration in the following months. Companies that elect not to file the BOI reports voluntarily should be prepared to file if the injunction is lifted once again.