Do I Have to Report for the Corporate Transparency Act? – Not Required, But You May Voluntarily Report

Posted Jan 2, 2025

By Washington State Business, Mergers and Acquisitions Lawyers David C. Tingstad and Andrew Tingstad

Recently, obligatory compliance with the Corporate Transparency Act (“CTA”) turned into the judiciary’s version of a sitcom relationship: the penultimate “will they or won’t they.” As you may recall, on December 3, 2024, the Eastern District Court of Texas issued a nationwide preliminary injunction of both the CTA and its respective implementation regulations (the “Reporting Rule”) imposed by the Financial Crimes Enforcement Network (“FinCen”). Texas Top Cop Shop, Inc., Et Al., v. Merrick Garland, Et Al., Cause No. 4:24-CV-478. The effect of this nationwide preliminary injunction meant compliance with the CTA and Reporting Rule became voluntary until Texas Top Cop Shop is decided on its merits.

However, on December 23, 2024, the Fifth Circuit of Appeals granted a stay of the Eastern District Court of Texas’ previous nationwide preliminary injunction of both the CTA and its Reporting Rule imposed by FinCEN. Sincerely v. Garland, USDC No. 4:24-CV-478, 2024 U.S. App. LEXIS 32565. The effect of this decision meant compliance with the CTA and Reporting Rule became obligatory once again.

Critically, late on December 26, 2024, the merits panel of the U.S. Court of Appeals for the Fifth Circuit reinstated Texas Top Cop Shop’s nationwide preliminary injunction. This means, once again, both the CTA and its Reporting Rule imposed by FinCEN are preliminarily enjoined nationwide until Texas Top Cop Shop is decided on its merits.

What This Means for You

As per our previous blog post (found here), effectively, if you needed to report to FinCEN under the CTA, you no longer need to report right now. In the ever-changing CTA landscape, we will continue to keep you updated with any developments and any future reporting deadlines.

Please feel free to contact us with any CTA compliance questions at 425-776-4100 or info@beresfordlaw.com.

BERESFORD BOOTH has made this content available to the general public for informational purposes only. The information on this site is not intended to convey legal opinions or legal advice.