Critchfield, Critchfield & Johnston, Ltd. (“Critchfield”) previously sent you an alert that your business may need to register the recently enacted federal Corporate Transparency Act (“CTA”).
On December 3, 2024, a federal District Court in Texas issued a temporary, nationwide hold against enforcing the law. While the hold was in place, filing was voluntary. At that time, we stated that we would pause all CTA filings except for those clients that expressly requested otherwise.
On Monday, December 23, 2024, the federal Fifth Circuit Court overturned the lower court’s hold. This means that the CTA is currently BACK IN EFFECT.
Since the law was reinstated close to the original January 1, 2025 deadline, THE NEW DEADLINE IS JANUARY 13, 2025, FOR BUSINESSES FORMED PRIOR TO 2024.
Depending on your circumstances, one of the following likely apply:
1) If you have already provided us with your information but haven’t been registered: We have resumed filings in a first-come, first-served manner. If your submission was received after December 1, we cannot guarantee that it will be filed before January 13, 2025.
2) If you have already been registered: Be aware that the law requires a filer to submit an updated report within 30 days if any of the previous information changes. We are available to assist you with updated filings.
3) If you have not yet provided your information: You may still send us your registration information. However, while we are making every effort to comply with the law, we cannot guarantee that we can file your information before the deadline if we do not already have it.
We will continue to file submissions even after the deadline, with the hope that there will be leniency for those who have cooperated in good faith with the law. The penalty for not filing is a fine of up to $591 for each day that the violation continues. Even if the initial deadline is missed, late filing can still reduce any potential fines.
While the law is back in effect for the time being, the litigation around the CTA remains in progress. The Fifth Circuit Court has expedited the case so that it can issue a more definitive ruling on the law’s constitutionality in the near future.
Critchfield will continue to monitor this developing situation and provide relevant updates at www.ccj.com and through our social media pages. Critchfield attorneys are available to answer questions regarding these newest developments and provide assistance with CTA filings.
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