News Article

Partner Lili Martin-Mashburn was quoted in an article featured across all 45 outlets of The Business Journals on recent court decisions regarding the Corporate Transparency Act, specifically focusing on the requirement for businesses to disclose ownership information to the Treasury Department.

After weeks of back-and-forth decisions on the enforcement of the Corporate Transparency Act (CTA) through December 2024, the U.S. Court of Appeals for the Fifth Circuit issued a ruling overturning the previous decision that had lifted the CTA injunction. This halted implementation of the requirement for business owners to report ownership information to the Treasury Department. Additionally, the Financial Crimes Enforcement Network (FinCEN) extended the deadline from January 1, 2025, to January 13, 2025.

Lili Martin-Mashburn commented on the unpredictability of the situation and its potential impact on small businesses and their advisors, stating, "it would not be surprising if there are further developments along the way."

"While oral arguments for the [Fifth] Circuit are not set until March 2025, the unpredictability of this situation means it would not be surprising if there are further developments along the way," Martin-Mashburn said in an email. "It seems likely that this issue will eventually reach the Supreme Court, so we may not have a clear resolution for some time. In the meantime, reporting companies that are not exempt from the CTA should be prepared to file if the CTA is ultimately reinstated."

Read the full article here.