Dec. 27, 2024 – The holiday wishes of attorneys and accountants have come true! On December 26, 2024, the U.S. Fifth Circuit Court of Appeals (the “Fifth Circuit”) reinstated the nationwide injunction that had been issued earlier in the month by a federal district court judge in Texas, who had ruled the Corporate Transparency Act (“CTA”) unconstitutional. This comes three days after a three-judge panel from the Fifth Circuit lifted the nationwide injunction. See December 24 Golenbock alert.
As noted in our December 5 Golenbock alert, in the case Texas Top Cop Shop, Inc. et al. v. Garland et al., a Texas federal district court had preliminarily blocked enforcement of the Corporate Transparency Act and its implementing regulations. The order held that companies nationwide did not need to comply with the January 1, 2025, deadline to report their beneficial owners to the Financial Crimes Enforcement Network (“FinCEN”).
In the Fifth Circuit’s December 26 Order, the court reinstated the injunction “[i]n order to preserve the constitutional status quo while [a different panel of the Fifth Circuit] considers the parties’ weighty substantive arguments . . .” in the pending appeal of the district court’s preliminary injunction.
Under the CTA, corporations and LLCs were required to report information concerning their beneficial owners to FinCEN, which collects and analyzes information about financial transactions to combat money laundering and other crimes. For more information regarding the CTA, please refer to our May 10, 2024 Golenbock update.
We will continue to monitor FinCEN’s developments regarding the CTA.
If you have any questions or need further information, please reach out to your contact at Golenbock or one of the following individuals on the Golenbock CTA FinCEN Compliance Committee:
Contacts:
Barry A. Cassell
bcassell@golenbock.com
(212) 907-7337
Jacob L. Chase
jchase@golenbock.com
(212) 907-7362
Sarah E. Kaehler
skaehler@golenbock.com
(212) 907-5680
Maureen R. Monaghan
mmonaghan@golenbock.com
(212) 907-7335
May Shim
mshim@golenbock.com
(212) 622-7161
Golenbock Eiseman Assor Bell & Peskoe LLP
Golenbock Eiseman Assor Bell & Peskoe LLP is a Manhattan-based business law firm with a broad-based practice that offers corporate, complex litigation, labor & employment, real estate, reorganization, intellectual property, tax, and trust & estate expertise. The firm provides high value, sophisticated counsel and representation for its domestic and international clients while maintaining a hands-on, personalized approach to all matters.
The firm represents entrepreneurial, portfolio, and institutional clients, ranging from start-ups to Fortune 500 companies, with a specific focus on the mid-market segment. Among our clients are private corporations, public companies, private equity firms, venture capital firms, individual investors, and entrepreneurs.
Golenbock is a member of the Alliott Global Alliance, which was named to Band 1 of global law firm alliances by Chambers Guides, the prestigious international legal survey. Alliott numbers 215 firms in 94 countries on six continents and helps member firms partner with others in countries around the globe.
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