Fifth Circuit Reinstates CTA Enforcement

On December 23, 2025, the Fifth Circuit granted the Department of Justice’s request to stay the nationwide injunction against enforcing the Corporate Transparency Act (CTA). Granting the motion to stay the injunction means that FinCEN may continue to enforce the CTA requirements while the case continues to make its way through the courts. Accordingly, reporting companies must again comply with the requirements to file beneficial ownership information reports or face penalties.  

Given the short timeline and the lack of certainty that reporting companies have faced, FinCEN announced it would extend the time to file for certain reporting companies, as follows: 

• Companies that were registered or in existence prior to January 1, 2024, will have until January 13, 2025, to file their initial reports.  
• Reporting companies created or registered on or after September 4, 2024, with a deadline between December 3, 2024, and December 23, 2024, will have until January 13, 2025, to file their initial reports. 
• Reporting companies created or registered between December 3, 2024, and December 23, 2024, will have an additional 21 days from their original filing date to file their initial reports. 
• Reporting companies that qualify for previously announced disaster relief may file at the later date of their extended due date or January 1, 2025.  
• Reporting companies created or registered to do business on or after January 1, 2025, will continue to have 30 days to file their initial report from the date their creation or registration is effective. 

So far, two courts have ruled that the CTA is outside the constitutional reach of Congress. The injunction was put in place on December 3, 2025, by a federal judge in the Eastern District of Texas. The Fifth Circuit has not yet ruled on the constitutional question at hand. 

Our professionals are following the CTA very closely. Watch for further information.