Written by James A. Carolan, CWS®, CTFA | Sr. Estate Planning Attorney for EWM Legal Solutions
As we reported previously, this is a fast-moving case. On December 23, 2024, the Fifth Circuit, in an unpublished order, granted the motion of the Department of Justice for a temporary stay of December 3, 2024, nationwide injunction issued by the District Court in the Texas Cop Shop case.
In its ruling, the Fifth Circuit found that the DOJ made a “strong showing” that it is likely to succeed in defending the constitutionality of the CTA. In a footnote the court noted that the government made a “substantial case” on the merits.
The Fifth Circuit, therefore, stated: “IT IS ORDERED that the government’s emergency motion for a stay pending appeal is GRANTED. IT IS FURTHER ORDERED that this appeal is EXPEDITED to the next available oral argument panel.”
This case continues to be on a fast track for a final decision. And in my opinion, it is likely that the matter will be appealed to the US Supreme Court at some point.
With this order, FinCEN will enforce the requirement that reporting entities file their Beneficial Owner Information (BOI) reports by January 1, 2025.
FinCEN issued the following alert:
“In light of a December 23, 2024, federal Court of Appeals decision, reporting companies, except as indicated below, are once again required to file beneficial ownership information with FinCEN. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, we have extended the reporting deadline as follows:
- Reporting companies created or registered prior to January 1, 2024, have until January 13, 2025, to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)
- Reporting companies created or registered in the United States on or after September 4, 2024, that had a filing deadline between December 3, 2024, and December 23, 2024, have until January 13, 2025, to file their initial beneficial ownership information reports with FinCEN.
- Reporting companies created or registered in the United States on or after December 3, 2024, and on or before December 23, 2024, have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
Where to Start?
Contact me at EWM Legal Solutions. I’m here to assist you in these kinds of legal matters, helping you protect what you care about most.
James A. Carolan, CWS®, CTFA
Sr. Estate Planning Attorney
Executive Wealth Management and EWM Legal Solutions are separate but affiliated companies. Executive Wealth Management (EWM) is a Registered Investment Advisor with the Securities and Exchange Commission. Reference to registration does not imply any specific level of qualification or skill. Investment Advisor Representatives of EWM offer Investment Advice and Financial Planning Services to customers located within the United States.
