In the ongoing saga of the enforcement of the Corporate Transparency Act, The Department of Justice (DOJ), representing the Financial Crimes Enforcement Network (FinCEN), has filed an Emergency Motion for Stay Pending Appeal with the U.S. Supreme Court. This follows the current nationwide injunction that prevents the enforcement of the Corporate Transparency Act (CTA).
Justice Samuel Alito has set a deadline of 4:00 PM Eastern on this coming this Friday, January 10, 2025, for the plaintiffs in the Texas Top Cop Shop case to respond to FinCEN’s request. The request involves reinstating the emergency stay initially granted by the Fifth Circuit Court of Appeals. A decision from the Supreme Court could follow swiftly after the response deadline.
If the Supreme Court sides with the government, compliance with the CTA would resume, potentially requiring Beneficial Owner Reports to be filed as soon as January 13, 2025. FinCEN might issue guidance allowing a few extra days for most filers, but any extension is unlikely to last until the Fifth Circuit Court of Appeals delivers its verdict on the preliminary injunction against the CTA. Oral arguments for that case are slated for March 25, 2025.
For businesses, accountants and legal professionals, this is a critical moment. Clients who might need to submit a Beneficial Owner Report and who have depended on the injunction to postpone filing should prepare for possible immediate action. Conversely, if the Supreme Court denies the DOJ’s request, the injunction will remain effective at least until March when the Fifth Circuit rules.
The coming days could bring pivotal changes. Whether the Supreme Court grants the DOJ’s appeal may significantly impact businesses across the nation. Stay tuned for updates, as the judicial developments could necessitate prompt compliance efforts.
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