Important news! The Corporate Transparency Act reporting is on hold. Stay updated! #CorporateTransparency #LegalNews
Memo
To: Clients & Friends
From: Fletcher Tilton PC
Date: December 30, 2024
RE: Client Advisory: U.S. Court of Appeals for the Fifth Circuit Halts Corporate Transparency Act Requirements– Immediate Attention Requested
We are writing to inform you that the U.S. Court of Appeals for the Fifth Circuit has issued a startling reversal and once again has issued a ruling in Texas Top Cop Shop, Incorporated, et al v. Merrick Garland, U.S. Attorney General, et al. (Docket No. 24-40792) halting the implementation of the reporting requirements under the Corporate Transparency Act (CTA). This decision marks the latest development in ongoing litigation surrounding the CTA’s provision that mandates certain entities to disclose their beneficial owners to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
The Court’s ruling effectively suspends the application of these requirements, meaning that entities that would typically be required to file beneficial ownership information with FinCEN are not required to do so at this time, but as FinCEN notes, reporting entities may continue to voluntarily submit beneficial information reports.
So, what happens next? Only time will tell; however, the Fifth Circuit Court of Appeals is considering the case on an expedited basis. Based on the current schedule, the parties’ briefs are to be filed in February and oral argument is scheduled for March 25, 2025, with a formal decision to be issued in due course thereafter.
Given the fluidity of this situation, we will continue to closely monitor this legal matter and update you on any further developments. Should the situation change, we will provide guidance on next steps and assist you in ensuring compliance with any new requirements.
If you have any questions or need further clarification regarding how this ruling may affect your business, please do not hesitate to contact us at bu*************@fl************.com. If you are already in contact with someone at the firm concerning your requirements under the CTA, please direct any comments to your primary contact. We appreciate the privilege of providing legal services to our clients.
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