A major, time-sensitive development has occurred in the litigation concerning the Corporate Transparency Act (“CTA”), a federal law which we first wrote about here. We last wrote here about the litigation on December 6, 2024 regarding a preliminary injunction granted by the U.S. District Court for the Eastern District of Texas which temporarily halted enforcement of the Corporate Transparency Act (“CTA”) and suspended the deadline for corporations, to include community associations, to file their Beneficial Owner Information Reports. However, as we noted, the government would inevitably appeal that injunction and the status of the filing deadline upon a potential reversal was unclear, meaning community association boards may decide to voluntarily file their beneficial ownership information ahead of the deadline in an abundance of caution.

Now, on December 23, 2024, the United States Court of Appeals for the Fifth Circuit issued an order granting an emergency motion from the government for a stay pending appeal.[3] This means the December 31, 2024 deadline to file Beneficial Ownership Information Reports is back in place. Among other observations, the Court found that the government has made a strong showing that it is ultimately likely to succeed on the merits of its case in defending the constitutionality of the CTA. The court also ordered that the appeal from the injunction be expedited, meaning further appellate review of the injunction should come sooner than later, although we cannot say exactly when to expect the future scheduling. Likewise, we cannot say at this time how the court(s) will rule upon further appellate review or how those rulings may impact the deadline. That said, unless and until a court rules otherwise, the December 31, 2024 deadline to file Beneficial Ownership Information Reports is back in place

For community associations, the immediate concern from this development is the reinstatement of the deadline to file their Beneficial Ownership Information Reports. Our firm remains prepared to file your beneficial ownership information with FinCEN for compliance with the CTA. You can provide your reporting information over a secure platform.

There, the association’s representative can provide the association’s beneficial owners information to enable our firm to compile and submit to FinCEN to help ensure compliance with the CTA. All information submitted will be contained in a secure portal within our firm. Filings would be billed pursuant to our firm’s hourly fee schedule with your community association.

Our firm will continue to closely monitor the status of the legal challenges to the CTA. We will continue to update our blog accordingly.

Our attorneys at McCabe, Trotter & Beverly, P.C. are well-equipped and prepared to assist your community association with CTA compliance.  Please contact us at (803) 724-5000 for further information.

McCabe, Trotter & Beverly, P.C. blogs and other content are for educational and informational purposes only. This is not legal advice and does not create an attorney/client relationship between McCabe, Trotter & Beverly, P.C., and readers. Readers should consult an attorney to understand how this information relates to their personal situation and circumstances. You should not use McCabe, Trotter & Beverly, P.C. blogs or content as a substitute for legal advice from a licensed attorney.

Valerie Garcia Giovanoli

[3] Texas Top Cop Shop v. Garland, 24-40792, (5th Cir. Dec 23, 2024) ECF No. 140.