Important Update: BOI Reporting Temporarily Suspended

By: Rajesh Ghimire

On December 26, 2024, the United States Court of Appeals for the Fifth Circuit issued an order vacating a stay on a preliminary injunction that had enjoined the enforcement of the CTA and its Reporting Rule. As a result, the requirement to file Beneficial Ownership Information (BOI) reports is currently on hold.

This decision comes amidst ongoing litigation challenging the CTA’s implementation. While the appeal remains expedited and under consideration, the court’s latest order temporarily halts enforcement to preserve the constitutional status quo.

Chugh, LLP will continue to monitor the situation closely and provide updates as the case progresses. In the meantime, please feel free to reach out with any questions or concerns about how this development might impact your compliance obligations.